CPPIB investing US$147.4 million for 45% stake in Santa Monica Business Park

TORONTO – Canada Pension Plan Investment Board and a partner have acquired the Santa Monica Business Park in California in a transaction valued at US$627.5 million.

CPPIB says it will invest US$147.4 million for a 45 per cent interest in the West Los Angeles business park.

Its joint venture partner in the acquisition is Boston Properties Inc., which will invest US$180.1 million and provide operating, property management and leasing services.

The purchase is also being funded with US$300 million of financing.

CPPIB managing director Hilary Spann said in a statement that the investment provides the Toronto-based pension fund manager with a sizable presence with the West L.A. office market.

She said Santa Monica makes for an attractive market with strong demand driven by technology and media firms in the area.