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CPPIB, GE Capital launch Tokyo property co-invest program

  • Andrew Woodman
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Canada Pension Plan Investment Board (CPPIB) and General Electric Capital Real Estate (GECRE) have formed a joint venture targeting investments in mid-size Class A-B offices in key central business district sub-markets in Tokyo.

The Tokyo Office Venture (TOV) will focus on value add and more moderate risk core plus investment opportunities in the city.

Both CPPIB and GECRE will each invest JPY40 billion ($396 million) in the venture, holding 49% and 51%, respectively. The venture will use the locally-based origination, underwriting, asset management and leasing teams of General Electric Japan Corporation.

"This opportunity provides us with an attractive entry point to the Tokyo office sector and supports our strategy to expand our real estate portfolio in Asia," Graeme Eadie, senior vice-president and head of real estate investments with CPPIB, said in a statement.

GE Capital Real Estate began actively originating and managing real estate properties in Japan in 1998 and has since acquired over US$6.9 billion office assets.

CPPIB, which manages funds on behalf of 18 million Canadian contributors and beneficiaries, invests in public equities, private equities, real estate, infrastructure and fixed income instruments. As of December 2012, the pension fund totaled C$172.6 billion ($171.3 billion) of which C$19.2 billion represents real estate investments.

 

 

 

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