Canada Pension Plan Investment Board has struck a deal for its first real estate investment in the Nordic region.
CPPIB is teaming up with Citycon Oyj to jointly acquire Kista Galleria Shopping Centre in Stockholm, Sweden.
The transaction is based on a property value of about $691-million.
Kista is to be owned by a joint venture company that is controlled 50/50 by CPPIB and Citycon.
CPPIB’s equity investment will be about $177-million.
“This is our first real estate investment in the Nordic region and we are excited to acquire a stake in Kista Galleria, a prime shopping centre in Stockholm,” CPPIB senior vice-president of real estate investments Graeme Eadie said in a news release Wednesday.
CPIBB intends to seek out other investment opportunities in the region with Citycon as it expands its retail portfolio in Europe, Mr. Eadie added.
Finland-based Citycon is a major owner, developer and operator of shopping centres and commercial properties in the Nordic and Baltic countries.
Kista Galleria has 185 shops and restaurants and leisure activities such as bowling, indoor go-karting and cinema.
CPPIB’s real estate portfolio was valued at $18-billion at Sept. 30, 2012.
It has stakes in shopping centres in Canada, Australia, Brazil, China, Germany, Turkey, the United Kingdom and United States.
The Kista transaction is slated to close in January 2013.