CPPIB Invests in China’s West Paradise Walk Mall With Longfor

  • Pension fund to invest C$193 million in Chinese shopping mall
  • Investment will give it 49% stake in Chongqing Paradise Walk

Canada Pension Plan Investment Board, the country’s largest pension fund, said it plans to invest C$193 million ($147 million) in a Chinese shopping mall, forging a second joint venture in the country with its partner Longfor Properties Co.

CPPIB’s investment will give it a 49 percent stake in the Chongqing West Paradise Walk, a six-level shopping mall built in 2008 in one of China’s largest cities, the partners said in a statement Thursday. Longfor is a retail mall developer in China.

“This joint venture fits well with our investment strategy and allows us to invest alongside a highly experienced partner in a high-quality real estate asset that will provide attractive risk-adjusted returns over the long term,” said Jimmy Phua, CPPIB’s head of real estate investments in Asia.

CPPIB and Longfor established its first joint venture in 2014 with a mixed-use real estate project in Suzhou, which included the development of a Paradise Walk mall. Pinnacle Real Estate Capital Partners was the independent adviser for the investment and will have an ongoing role with CPPIB and Longfor, the companies said.

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