(December 23, 2016): Canada Pension Plan Investment Board (CPPIB) announced
today that it has sold its 45% ownership interest in a Manhattan office
property, 1221 Avenue of the Americas (1221), to a global institutional
investor for US$1.03 billion, with net proceeds to CPPIB of approximately US$950
million before closing adjustments. The transaction values 100% of the
property at US$2.29 billion.
The property is a 50-storey, 2.6 million-square-foot office
building in Midtown Manhattan and part of the Rockefeller Center complex. CPPIB
acquired its ownership interest in 2010. Rockefeller
Group maintains its 55% ownership interest following the sale and will continue
to manage the asset.
“Valuations in the Manhattan office market have increased
significantly since our acquisition of 1221, and we feel this is an opportune
time to monetize our position in the property,” said Hilary Spann, Managing
Director, Head of U.S. Real Estate Investments, CPPIB. “Manhattan remains a
target market for us, and we continue to pursue new investment opportunities
here and in other key U.S. real estate markets.”
As at September 30, 2016, CPPIB’s investments in U.S. real
estate totalled C$15.1 billion.
About Canada Pension Plan Investment Board
Pension Plan Investment Board (CPPIB) is a professional investment management
organization that invests the funds not needed by the Canada Pension Plan (CPP)
to pay current benefits on behalf of 19 million contributors and beneficiaries.
In order to build a diversified portfolio of CPP assets, CPPIB invests in
public equities, private equities, real estate, infrastructure and fixed income
instruments. Headquartered in Toronto, with offices in Hong Kong, London,
Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed
independently of the Canada Pension Plan and at arm’s length from governments.
At September 30, 2016, the CPP Fund totalled C$300.5 billion. For more information about
CPPIB, please visit www.cppib.com or
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