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BT PS and CPPIB form property joint venture
12 July 2013
Vehicle to invest in London office space
BT Pension Scheme
Canada Pension Plan Investment Board
The UK's BT Pension Scheme (BTPS) and the Canada Pension Plan Investment Board (CPPIB) have announced a real estate investment partnership.
The £173.9m deal sees the CPPIB take a 50% stake in BTPS' existing core-plus/value-add portfolio with investments in eight London offices. The deal was signed via BTPS' specialist real estate investment arm, Hermes Real Estate Investment Management Limited.
The properties are located primarily in London’s West End and comprise 550,000 sq ft of offices, retail and accommodation real estate.
Graeme Eadie, senior vice-president and head of real estate investments for CPPIB, said: “This acquisition is in line with our strategy to capitalise on attractive opportunities in the London office market and invest alongside well-aligned partners.
“We see an excellent opportunity to increase the seed portfolio’s value and to grow the venture by acquiring more value-add product in Central London.”
BTPS and CPPIB said they hoped to double the size of the portfolio with further investments in similar core-plus/value-added properties.
The current portfolio includes properties on London's Regent Street, New Oxford Street, Broadwick Street and Cheapside House.