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Mark Wiseman, president and CEO of the Canada Pension Plan Investment Board, speaks at The Globe and Mail in Toronto on June 10, 2014.Peter Power/The Globe and Mail

The Canada Pension Plan Investment Board has agreed to buy a 45-per-cent stake in a San Francisco office tower that serves as the headquarters for ride-sharing service Uber and mobile payments company Square.

CPPIB will pay $219.2-million (U.S.) to invest in the 22-storey tower at 1455 Market St., which is the retirement fund manager's first direct foray into San Francisco office real estate.

Hudson Pacific Properties, which currently owns the building, will retain a 55-per-cent stake and will continue to be responsible for managing and leasing the property.

The 1,025,833-square-foot property fronts an entire block along 11th St., in San Francisco's Mid-Market neighbourhood, and once served as a data collection centre for Bank of America.

The building's ground floor, which houses retail, will be expanded this year to target high-end retail and restaurant users.

Hudson says it may use the proceeds from the deal to help fund its US$3.5 billion deal to buy a portfolio of properties from Blackstone's Real Estate Funds.

"A joint venture with CPPIB unlocks a significant portion of the value created for shareholders to date, and lays a strong foundation for our firms to explore additional investment opportunities together," Victor Coleman, Hudson's chairman and CEO, said in a statement.

Peter Ballon, the head of CPPIB's American real estate investments division, said "we look forward to building our relationship with Hudson . . . as we expand our office portfolio on the West Coast."