The march of the maple leaf into central London property stepped up a gear today as BT’s pension fund joined forces with a leading Canadian fund to snap up prime assets in the capital.
The Canada Pension Plan Investment Board, which manages the savings of 18 million Canadians, is spending £173.9 million to buy a 50% stake in a new joint venture seeded with eight central London properties owned by Hermes.
The buildings include 100 Regent Street, home of Austin Reed’s flagship store, and 242 Marylebone Road, the original headquarters of failed retailer Woolworths. The duo plan to go shopping for more London assets under plans to double the size of the joint venture.
CPPIB is already in partnership with Land Securities over its Victoria Circle development near Victoria station while British Land has tied up with another Canadian pension fund to develop the Cheesegrater skyscraper in the City.
CPPIB’s head of real estate investment Graeme Eadie said: “This acquisition is in line with our strategy to capitalise on attractive opportunities in the London office market.”
