Ontario Teachers Buys PODS From Arcapita for $1 Billion

The Ontario Teachers’ Pension Plan bought PODS Inc, a portable moving and storage company, from Bahrain-based Arcapita Bank BSC for more than $1 billion.

The Canadian fund’s long-term equities group, with $140.8 billion in assets, led the acquisition of Clearwater, Florida-based PODS, according to an Arcapita statement Tuesday.

The private equity fund acquired PODS in December 2007 and the exit will bring to $2 billion the proceeds returned to investors over the past 18 months, according to Arcapita. The firm sold its 50 percent stake in the $1.4 billion Lusail Golf Development in Qatar to Barwa Real Estate last month.

Arcapita is planning a return to new investments for the first time since emerging from bankruptcy, it said in November.

“We have an active new deal pipeline and expect to complete a number of new investments over the next few months,” said Abdulaziz Aljomaih, chairman of Arcapita.

Arcapita is seeking to invest about $100 million in the United Arab Emirates and Saudi Arabia, Atif Abdulmalik, chief executive officer at Arcapita, said in a November interview.

The company has changed its business model since filing for bankruptcy in March 2012. It now invests a limited amount of its own capital in each transaction and raises the rest from investors before a deal is signed. Previously, it booked deals on its own balance sheet and then sold them on to investors.

The Ontario Teachers’ Pension Plan is the largest single-profession pension plan in Canada, investing the pension assets of over 300,000 active and retired teachers in Ontario.

Its Long-Term Equities group focuses on making direct investments that generate steady cash-flows and have good growth potential with a low to moderate level of risk.

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