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BT Pension Scheme enters partnership with Canada Pension Plan

25 July 2013

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The Canada Pension Plan Investment Board (CPPIB) and the BT Pension Scheme (BTPS) have formed a 50:50 joint property venture.

The partnership will initially include eight Central London office assets from BTPS' existing portfolio, and CPPIB will invest £173.9m to acquire a 50% interest in this core-plus/value-add portfolio, with the assets primarily located in London's West End.

The portfolio comprises 550,000 sq ft of high quality offices, retail and ancillary accommodation, and the partners intend to double the size of the joint venture collaboration by increasing its exposure to similar types of core-plus/value-add assets.

Hermes Real Estate Management Limited is acting on behalf of BTPS and its chief executive officer Chris Taylor said: "We are delighted to be entering into this joint venture partnership with CPPIB as a like-minded long-term global investor.

Taylor added: "Our ability to source opportunities off-market and act decisively together with a conviction to understand how occupiers assess real estate provides a compelling case for investing in this platform. We firmly believe Central London will continue to deliver attractive opportunities."

The joint venture portfolio comprises 100 New Oxford Street, 40 Eastbourne Terrace, 50 Eastbourne Terrace, 242 Marylebone Road, Cheapside House, 20/24 Broadwick Street and 69 Carter Lane.

CPPIB senior vice-president and head of real estate investments Graeme Eadie said: "We are pleased to be partnering with BTPS and Hermes on this unique opportunity to invest in a high quality, well-diversified portfolio of office properties in prime Central London locations.

"This acquisition is in line with our strategy to capitalise on attractive opportunities in the London office market and invest alongside well-aligned partners. We see an excellent opportunity to increase the seed portfolio's value and to grow the venture by acquiring more value-add product in Central London."

First published 15.07.2013

monique_simpson@wilmington.co.uk