CPPIB in $1.8m mall deal with Australia’s Westfield

The world's second largest mall owner has formed a $4.8 billion joint venture with the pensions manager, marking the latter's latest direct investment involving Australian-owned assets. The deal includes shares in 10 regional malls and two redevelopment sites, most of which are located in California.

Sydney-headquartered Westfield is forecasting a surge in activity in the US retail market this year, and expects the net operating income for its US malls to grow by 2-3%.

"This is an excellent opportunity to acquire a significant interest in a portfolio comprising high quality regional shopping centres that are well positioned for long term growth," said Graeme Eadie, senior vice-president for real estate investments at CPPIB. "[It] supports our retail real estate strategy of investing in dominant regional malls with best in class operators."

This year represents the third year that CPPIB has participated in one of the world's largest deals, and there are signs that direct investment involving Australian companies may be a growing part of its strategy.

Last December the firm and another Australian joint venture partner, Goodman Group, infused Goodman China Logistics Holding with an additional $250 million, while in 2010 it acquired Australian toll road player Intoll Group for A$3.4 billion. The Intoll deal was a far more successful sequel to CPPIB's ultimately abortive attempt with Ontario Teacher Pension Plan to pick up rival roads player Transurban Group for A$6.6 billion earlier that year.

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• Topics
• Australasia
• Real estate
• Real estate
• Real estate
• Australia
• LPs