CPP Investment Board buys into portfolio of U.S. warehouses, other properties

TORONTO – Canada Pension Plan Investment Board is expanding its investments in the United States, including a US$350-million real estate deal.

The transaction will give the Toronto-based fund manager a 10.6 per cent interest in a joint venture involving various logistics properties, such as warehouses and business parks throughout the United States.

One of its partners in the venture is Global Logistics Properties, which acquired its interest in the portfolio in February 2015.

CPPIB says GLP will continue to manage the portfolio for the joint venture, which includes three other institutional investors that weren’t identified in the announcement.

CPPIB manages a $268.6-billion fund on behalf of Canada Pension Plan.

Earlier Tuesday, CPPIB announced it had committed to spend about US$400 million towards a previously announced deal in the U.S. cable industry.

CPPIB, as well as funds advised by BC Partners and other co-investors, say they will exercise their option to acquire a total of 30 per cent ownershipin Cablevision Systems Corp, a New York-area company being acquired by Altice SA for US$17.7 billion, including debt.

That’s a followup to their decision in May to sell a controlling stake in the smaller Suddenlink cable system to Altice. CPPIB’s portion of that transaction, which was Altice’s first move into the U.S. market, was worth US$1.16 billion. The Canadian fund manager retained a minority stake in Suddenlink’s parent.