The $328 billion Canada Pension Plan Investment Board (CPPIB) and Longfor Properties Co. Ltd., are set to extend their partnership by including two new mixed-use real estate development projects in Chengdu and Shanghai, China.
The 740,000-square-meter Chengdu project—located in the Eastern part of the Sichuan province capital—will be for both residential and commercial use, as will s the 340,000-square-meter Shanghai site, located in South Minhang. Both mixed-use projects will provide commercial transportation links as well as a Paradise Walk shopping mall. For both projects, the CPPIB will commit approximately C$800 million (roughly $650 million).
“We are pleased to extend our existing relationship with Longfor Properties, one of the top real estate developers in China, through these development projects in Chengdu and Shanghai. Both cities are well positioned to capitalize on the future economic growth and harness the returns of growing consumption in China,” Jimmy Phua, managing director, Head of Real Estate Investments Asia, CPPIB, said in a statement. “These projects deliver on CPPIB’s strategy to grow our investments in the Chinese real estate sector, specifically in the fast-growing retail sector. The investments will help CPPIB diversify its real estate interests in China, providing attractive risk-adjusted returns over the long term.”
The two entities first began working together in 2014, with a mixed-use real estate project in Suzhou, China, which also included the development of a Paradise Walk mall.
“We look forward to further extending our cooperation with CPPIB. These investments are another set of landmarks in our work together, following the Suzhou Times Paradise Walk and Chongqing West Paradise Walk projects,” said Zhao Yi, executive director and chief financial officer of Longfor Properties, in a statement. “The mixed-use sites in Chengdu and Shanghai are both ideally located, high-quality assets that are expected to offer strong future returns. Our expertise in real estate development as well as in mall operations and management will help us deliver value to our shareholders and partners.”
Tags: Canada Pension Plan Investment Board, China, Longfor Properties, Paradise Walk Mall, Real Estate