Canada Pension Plan Investment Board (CPPIB) announced today that its wholly-owned subsidiary, CPPIB Europe S.à r.l., (CPPIBE), has entered into an agreement to form a strategic joint venture with Unibail-Rodamco to grow its German retail real estate platform. The joint venture will be formed through CPPIB’s indirect acquisition of a 46.1 per cent interest in mfi management für immobilien AG (mfi) for EUR394 million. In addition, CPPIB will invest a further EUR366 million in support of mfi’s financing strategies.
An existing joint venture partner of CPPIB through the CentrO Shopping Centre asset in Germany, Unibail-Rodamco is the second largest retail REIT in the world and the largest in Europe, and Unibail-Rodamco’s German retail platform, mfi is a fully integrated company engaged in investment, development, leasing and management of shopping centres across Germany.
“As a long-term investor, this transaction provides us with the unique opportunity to achieve immediate scale in the retail sector in Europe’s largest economy,” said Andrea Orlandi, CPPIB’s Managing Director and Head of Real Estate Investments Europe.
mfi’s portfolio consists of seven existing shopping centres located in key cities such as Munich, Berlin and Leipzig, and one additional asset under development in Osnabrück. The second largest property and asset manager in Germany, mfi also provides third-party asset management services for an additional 18 shopping centres across Germany.