CPP acquires UK shopping mall
TORONTO – Henderson Global Investors (HGI), based in London, England and the Canada Pension Plan Investment Board, announced a joint agreement to acquire the Whitefriars Quarter shopping centre in Canterbury, Kent, England for $253 million. The shopping centre, which has over 600,000 square feet of retail space, is the recipient of the “Best New Large Centre in Europe” award.
In addition to funding its 50 per cent interest in the Whitefriars Quarter, CPP Investment Board has invested an additional $150 million in Henderson’s UK Shopping Centre Fund, which already holds interests in four shopping centres in major UK cities.
The CPP Investment Board, based in Toronto, invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 16 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board is investing in publicly-traded stocks, private equities, real estate, inflation-linked bonds, infrastructure and fixed income.
“Investing in Whitefriars and Henderson’s UK Shopping Centre Fund provides a logical expansion of our UK retail strategy, which is to generate strong long-term returns by acquiring interests in quality properties alongside knowledgeable partners,” said Graeme Eadie, senior vice-president of real estate investments at the CPP Investment Board. “With this transaction we have added significantly to our portfolio of UK retail assets.”