CPPIB investing US$147.4 million for 45% stake in Santa Monica Business Park

TORONTO — Canada Pension Plan Investment Board and a partner have acquired the Santa Monica Business Park in California in a transaction valued at US$627.5 million.

CPPIB says it will invest US$147.4 million for a 45 per cent interest in the West Los Angeles business park.

Its joint venture partner in the acquisition is Boston Properties Inc., which will invest US$180.1 million and provide operating, property management and leasing services.

The purchase is also being funded with US$300 million of financing.

CPPIB managing director Hilary Spann said in a statement that the investment provides the Toronto-based pension fund manager with a sizable presence with the West L.A. office market.

She said Santa Monica makes for an attractive market with strong demand driven by technology and media firms in the area.

The Canadian Press