CPPIB to sell stake in China’s Raffles City developments

Canada Pension Plan Investment Board has agreed to sell its stake in six Raffles City developments, an integrated property development in China.

Canada Pension Plan Investment Board has agreed to sell its stake in six Raffles City developments, an integrated property development in China. CPPIB will see about C$800 million in proceeds from the sale, which is part of CapitaLand’s agreement with Ping An Life Insurance to divest partial stakes in the six developments.

PRESS RELEASE

HONG KONG, June 28, 2021 /CNW/ – Canada Pension Plan Investment Board (CPP Investments) today announced that it has agreed to sell its stake in six Raffles City developments in China. Net proceeds to CPP Investments from the sale would be approximately C$800 million before closing adjustments.

CPP Investments invested in the first Raffles City China development, majority owned and managed by CapitaLand, in 2008. The partnership has since expanded through the development of new assets and additional acquisitions.

“We first invested in Raffles City China shortly after we opened our Hong Kong office in 2008. Through our longstanding partnership with CapitaLand, the venture has grown into one of China’s best-known brands for integrated property developments. As China’s economy and real estate market expand and mature, this is an ideal time to monetize the investment for other opportunities in the country,” said Guy Fulton, Managing Director, Head of Real Estate, Greater China, CPP Investments.
The sale is part of CapitaLand’s agreement with Ping An Life Insurance to divest partial stakes in the six Raffles City developments.

The transaction is subject to customary closing conditions and regulatory approvals.

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2021, the Fund totalled C$497.2 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.