The Canada Pension Plan Investment Board says it has paid $118.6-million for a 50-per-cent interest in a South Korean real estate investment trust.
The Samsung SRA Private Real Estate Trust No. 4 is a single-asset fund which owns an office development property in Seoul that will become the headquarters of Samsung SDS, the country's largest IT service company.
The property, which will include 1.1 million square feet or 102,193 square metres of space over 30 floors and underground parking, is scheduled to be completed in May.
The transaction is the pension fund manager's first real estate investment in South Korea.
"We see this investment as an attractive entry point into the Korean market," stated Graeme Eadie, head of real estate investments for CPPIB. "As Asia's fourth-largest economy, South Korea is a key market with stable long-term growth prospects."
The Canada Pension Plan Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million contributors and beneficiaries.
Its is among the country's largest pension fund managers with $188.9-billion of assets as of June 30, including $20.9-billion in real estate investments.
Editor's note: The size of the property in question has been corrected by The Canadian Press