CPP Investment Board Invests $1 Billion in Portfolio of Major Canadian Real Estate with Oxford Properties June 15, 2005
The CPP Investment Board today announced it has acquired a 50 per cent ownership interest in a national portfolio of 11 commercial real estate properties from Oxford Properties Group for $1 billion.
With Class "A" properties in Calgary, Edmonton, Montreal, Ottawa, Toronto and Vancouver, the total portfolio comprises 8.2 million square feet of commercial office space in prime downtown locations. Oxford Properties retains a 50 per cent interest in the portfolio and is the operating partner.
"This transaction significantly advances our plan to diversify the CPP reserve fund into high quality real estate and other real return assets. This is an exceptional opportunity that fits very well with our long-term investment objectives," said David Denison, President and CEO, CPP Investment Board.
"Real estate offers attractive risk-adjusted returns that are a good match for the inflation-indexed benefits provided by the CPP. We are pleased to be working with Oxford Properties, one of the country's largest real estate companies," said Mr. Denison.
Specifically, the portfolio includes:
|
City |
Building |
Square Feet |
|
Calgary |
Canterra Tower |
820,000 |
|
Edmonton |
Edmonton City Centre |
1,800,000 |
|
|
Bell Tower |
469,000 |
|
Montreal |
Place de la Cathédrale |
645,000 |
|
Ottawa |
Constitution Square |
712,000 |
|
Toronto |
Royal Bank Plaza |
1,500,000 |
|
|
WaterPark Place |
803,000 |
|
|
One Financial Place |
655,000 |
|
Vancouver |
Guinness Tower |
255,000 |
|
|
Marine Building |
173,000 |
|
|
Oceanic Plaza |
343,000 |
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities, real estate and infrastructure to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to 16-million Canadians. With a mandate from the federal and provincial governments, the CPP Investment Board is accountable to Parliament and to the federal and provincial finance ministers who serve as stewards of the CPP.
Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its fiscal year is from April 1 to March 31. As of March 31, 2005, the CPP reserve fund had assets of $81.3 billion. For more information about the CPP Investment Board, visit www.cppib.ca.
Oxford Properties Group is the global real estate investment platform for the Ontario Municipal Employees Retirement System (OMERS).
For further information contact:
John Cappelletti
Manager - Communications
CPP Investment Board
416-868-0308
jcappelletti@cppib.ca |
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