Canada Pension Plan Investment Board has entered a joint venture with General Growth Properties Inc. , one of the biggest mall owners in the U.S., to acquire a stake in two Saint Louis, Mo. malls.
Through the joint venture to buy Plaza Frontenac with GGP, which is 38 per cent owned by Toronto-based Brookfield Asset Management, CPPIB will also take a 26 per cent stake in GGP’s Saint Louis Galleria mall.
GGP will own 55 per cent of Plaza Frontenac, with CPPIB owning the remaining 45 per cent.
“This joint venture expands the geographic diversity of CPPIB’s U.S. real estate portfolio with the addition of two premier malls,” said Peter Ballon, vice-president and head of Americas, real estate investments at CPPIB.
The CPPIB invests money not required to pay benefits under the Canada Pension Plan.