(September 9, 2013) — Canada Pension Plan Investment Board (CPPIB) acquired its first real estate in South Korea, buying a 50% interest in a new office tower owned by Samsung Electronics Company.
CPPIB will commit C$118.6 million (KRW 126 billion) for the Samsung SRA Private Real Estate Investment Trust no. 4 in Jamsil, an area near the Gangnam district.
Scheduled for completion in May 2014, the property will serve as headquarters for Samsung SDS, a subsidiary focused on the corporation’s information technology.
“We see this investment as an attractive entry point into the Korean market,” Graeme Eadie, senior vice president and head of real estate at CPPIB, said. “As Asia’s fourth largest economy, South Korea is a key market with stable long-term growth prospects.”
The pension plan manages C$188.9 billion of retirement savings of over 18 million Canadian contributors and beneficiaries, investing in public and private equities, real estate, infrastructure, and fixed income instruments.
As of June 30, 2013, real estate accounted for 11.1% of total assets, or $20.9 billion.
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Sage Um
Assistant Editor, aiCIO
sum@assetinternational.com