The Canadian allocator has placed a $222.5 million bet on commercial real estate properties.
The Canada Pension Plan Investment Board (CPPIB) is investing US$222.5 million in middle-market real estate credit opportunities in France by partnering with Acofi Gestion, a Paris-based asset manager.
Acofi Gestion will advise on the venture and offer debt financing solutions to borrowers in one of Europe’s largest commercial real estate markets, CPPIB said Tuesday. It’s targeting medium-sized whole loans and mezzanine loans for assets.
The Canadian pension fund is venturing further into commercial real estate, just as more offices, hotels, retail, and other properties are increasingly under pressure because of the pandemic.
/CNW/ - Canada Pension Plan Investment Board (CPP Investments), through its Real Assets Credit (RAC) investment group, and Acofi Gestion have confirmed a.
CPP Investments, investing through its real assets credit investment business, has committed €185m to the new venture.
In a joint statement, the companies said the venture will be advised by Acofi and will provide borrowers with a suite of debt financing solutions, targeting medium-sized whole loans and mezzanine loans to support commercial real estate.
“The partnership will invest in higher leverage, middle-market financings against stabilised, transitional and development assets that are not currently supported by mainstream lenders and will pursue an investment strategy that is diversified in terms of instrument, asset class and geography.”
Alain Carrier, the head of Europe, head of international at CPP Investments, said: “With France as one of the largest commercial real estate markets in Europe, we have identified a clear shortage of local, flexible and structured sources of debt finance, particularly for more complex transactions.