pension manager invests in U.S. real estate
Real estate news By U.S. dollars unless noted
Tue Feb 27, 2007 3:01PM EST
VANCOUVER, British Columbia , Feb 27 (Reuters) - The CPP
Investment Board, one of Canada's biggest pension fund managers,
will invest $500 million in the U.S. real estate market
in a deal with New York-based money manager TIAA-CREF, the
two firms said on Tuesday.
CPP, which invests the funds not needed by the Canada Pension
Plan to pay benefits to members, has earmarked $300 million
for a joint venture with TIAA-CREF to invest in top-notch
office properties in the United States. TIAA-CREF invests
billions of dollars for universities and nonprofits groups.
The U.S. money manger will contribute $312 million to the
joint venture, giving it a 51 percent stake, and will also
provide asset management services.
Including debt, the gross value of the venture is expected
to reach about $1.5 billion. The venture plans to invest
in partially-leased office properties valued between $100
million and $200 million in stable or recovering metropolitan
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