CPPIB Invests $329 Million in Aussie RE Fund

(August 25, 2010) — The Canada Pension Plan Investment Board (CPPIB) is investing about $329 million in the Australian real estate fund Colonial First State Global Asset Management.

“This investment represents a key opportunity for CPPIB to invest alongside other major Australian institutional investors in a well-diversified portfolio of regional shopping centres in Australia managed by a highly experienced operator,” said Graeme Eadie, senior vice-president of real estate investments at CPPIB.

The deal illustrates how Canadian investments in Australia have been largely driven by the growth of commodities and infrastructure. In July, the CPPIB completed a $3.2-billion (Canadian) proposal to acquire Australia’s Intoll Group. Earlier this month, Agrium Inc. unleashed a $1.16-billion bid for Australia’s AWB Ltd.. Even more recently, Toronto-based Brookfield Infrastructure Partners this week submitted an offer for the 60% of Sydney-based Prime Infrastructure that it doesn’t already own, a bid that values the company at $1.4-billion.

The fund in which CPPIB is investing currently has a $1.1-billion portfolio consisting of nine shopping centers across Australia. While retail sales have remained relatively dismal in Australia, many analysts expect economic strength and consumer confidence to rebound, Canada’s Globe and Mail reported.