Canada Pension Plan Investment Board said on Thursday it would put C$205.6 million ($160 million) into a joint venture with Mitsubishi Estate to buy commercial and residential assets in Japan, a day after Quebec’s provincial investment fund announced a $2 billion Japanese property deal.
The joint venture will be managed by Mitsubishi Jisho Investment Advisors, a wholly-owned subsidiary of Mitsubishi Estate and one of the largest real estate fund managers in Japan with assets under management of 920 billion yen ($8 billion).
Established in 1937, Mitsubishi Estate specialises in development, leasing, and management of office buildings, retail, logistics, hotel and residential properties.
“As one of the most established real estate markets in Asia, Japan offers a broad range of investment opportunities across the sector with attractive risk-adjusted returns,” said Gilles Chow, managing director and head of real estate for North Asia at the Canadian board, which is known as CPP Investments.
“Mitsubishi Estate is a highly respected partner with deep local real estate development and management experience and will help us to further diversify our real estate portfolio in Japan.”
CPP Investments manages a fund for 20 million contributors and beneficiaries of the Canada Pension Plan.
The deal follows an announcement on Wednesday by Allianz Real Estate, one of the world’s largest property investment managers, that it would invest $2 billion in Japanese residential assets.
The Pimco-owned group, based in Munich, would partner with Canada’s Ivanhoé Cambridge and other investors “to build a diversified portfolio of multi-family residential assets across top tier-cities in Japan”.
Ivanhoé Cambridge is a subsidiary of the Caisse de dépôt et placement du Québec, one of Canada’s biggest institutional fund managers.
- George Russell
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