Cppib New York Expands Real Estate Portfolio

CpPIB New York has been actively expanding its real estate portfolio, with a focus on strategic investments in the US market. The team has been working hard to identify top-tier assets and partnerships that align with their investment goals.

In 2020, CpPIB New York made a significant investment in a 1.1 million square foot office building in Manhattan. This deal marked a major milestone for the team, demonstrating their ability to close large transactions in a competitive market.

The team's expertise in real estate investing has allowed them to build a diverse portfolio of assets across the US. Their focus on strategic investments has helped them navigate market fluctuations and achieve strong returns.

CPPIB acquired a 45% stake in a New York office building for about US$57.4 million.

The acquisition is part of a joint venture deal with SL Green Realty Corp., New York City's largest commercial office landlord.

The purchased property is a 37-story, 390,000 square-foot building located in the Plaza district of midtown Manhattan.

The purchase price for the entire property was $252.5 million.

The Canada Pension Plan Investment Board (CPPIB) has made a significant acquisition in New York City, paying around $57.4 million for a 45% stake in a 37-story office building.

Located in the heart of midtown Manhattan, the 390,000 square-foot property at 10 East 53rd Street is a prime piece of real estate.

The acquisition is part of a joint venture deal with SL Green Realty Corp., New York City's largest commercial office landlord.

The purchase price of the property was a whopping $252.5 million.

CPPIB's real estate portfolio now includes interest in five office buildings in Manhattan.

CPPIB sold its 45 percent ownership stake in 1221 Avenue of the Americas, a 2.6 million-square-foot office tower at Rockefeller Center, for $1 billion.

The sale valued the asset at a whopping $2.3 billion, a significant increase in valuation since CPPIB's acquisition of the stake in 2017.

CPPIB purchased the stake from SL Green for $576 million, marking its entrée into Manhattan's Class A office market.

Valuations in the Manhattan office market have increased significantly since CPPIB's acquisition, prompting the pension fund to monetize its position in the property.

CPPIB's decision to sell was spurred by timing, as the fund continues to pursue new investment opportunities in the Manhattan office market and other key U.S. real estate markets.

Manhattan remains a target market for CPPIB, which co-owns One Park Avenue with Vornado Realty Trust and has increased its interest to 45 percent in a $108 million deal in 2014.

U.S. markets represent roughly 36 percent of CPPIB's global real estate investment portfolio, with the fund recently purchasing Hill7, a 285,700-square-foot office tower in Seattle, for $180 million in a joint venture transaction.

CPPIB's sale of its stake in 1221 Avenue of the Americas comes six years after the initial acquisition, demonstrating the pension fund's willingness to adapt and adjust its investment strategy as market conditions change.

The sale highlights CPPIB's ability to navigate complex market conditions and capitalize on opportunities for growth and profit.

CPPIB sold its stake in a New York office building for $1 to Boston Properties at the end of 2023. The building, located at 360 Park Avenue South in Manhattan, was built in 1913.

Boston Properties acquired CPPIB's 45% interest in the building, which had invested $71 million and would have needed to furnish an additional $46 million.

CPPIB also sold its stake in a Santa Monica, Calif., business park to Boston Properties for $38 million, a discount of almost 75% from the Canadian pension fund manager's original investment.

Google spent $2.1 billion to buy a New York development from Oxford Properties, the real estate arm of the Ontario Municipal Employees Retirement System.

Oxford owns 52.5% of the St. John's project, with partner Canada Pension Plan Investment Board owning the remainder.

The two partners bought the 3.25-acre site and building for $700 million from Westbrook Partners and Atlas Capital Group in 2018.