Pension and benefits briefs (Feb. 10, 2002)

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|CHRR, Guide to Pensions & Benefits|Last Updated: 09/04/2003

CPP goes shopping, buys a few malls

Ottawa

— The Canada Pension Plan has stepped into the world of real estate, joining forces with a private real estate company to buy five shopping centres in Ontario from the Ontario Teachers’ Pension Plan Board.

CPP and Ossington Inc. will pay $300 million for malls in Sudbury, Thunder Bay and Hamilton. CPP is kicking in $200 million of the purchase price. This is the first real estate purchase by the CPP’s Investment Board, which had in the past limited its real estate investments to holding shares in property companies or income trusts. By 2012 the CPP plans to invest as much as $8 billion in real estate and infrastructure. The board is hoping for a return of 4.5 per cent a year above inflation from its new real estate portfolio.