Canada Pension Plan Investment Board (CPPIB), through CPPIB Credit Investments Inc., has agreed to participate in AUS$500m of seed lending to a newly established fund with Challenger Investment Partners (CIP) to invest in middle-market real estate loans in Australia and New Zealand.
CIP will source and manage investments on behalf of the fund. The fund will look to provide alternative financing to owners of well-located properties in key gateway cities across Australia and New Zealand. CIP will originate senior and subordinated loans, backed by stabilized, transitional and development assets.
“This partnership marks our first real estate debt investment in Australia and New Zealand,” CPPIB head of private real estate debt Geoffrey Souter said.
CIP had approximately AUS $19bn in assets under management. It is wholly owned by Challenger Limited, an ASX-listed investment management firm managing AUS$76.5bn in assets.
For CPPIB Asia Pacific head and senior managing director Suyi Kim, this new partnership with CIP will expand CPPIB’s investment footprint into new asset classes across the region.
“This region offers CPPIB attractive investment opportunities supported by strong fundamentals, and it remains a high priority for our growth,” Kim said.
This article has been edited. It first appeared on Private Capital Journal, a site managed by CPE Media Inc, the official data provider for PCMA. Read the rest of the article here.
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