CPPIB Sells 50% Stake in London’s Nova Victoria to Singapore-Based REIT

A planned sale of the Canada Pension Plan Investment Board (CPPIB)’s half-stake in the Nova Victoria development in central London, a deal that was reportedly delayed because of the coronavirus earlier this year, has been finalized.

The Canadian pension plan said last week that it will sell its 50% stake in phase one of the $1 billion mixed-use real estate project to Singapore-based Suntec REIT [Real Estate Investment Trust], which is managed under ARA Asset Management. The transaction is expected to yield $549 million when the deal closes later this year, the fund said.

“The sale of Nova phase one is the culmination of a long-term and highly successful joint venture development project,” said Tom Jackson, managing director and head of UK real estate at CPPIB. The CPPIB made the joint venture with UK-based REIT Landsec.

“The project has been a huge success, as a large and high-quality mixed-use development scheme that has significantly revitalized the area around Victoria station. It represents one of the most successful developments in London in recent times,” Jackson added.

Construction for phase one of the Nova Victoria development finished in 2017. The two office buildings and the block of apartments, near the Victoria subway stations, are essentially fully rented and sold. About five buildings in total are involved in the Nova Victoria project.

The global investor said it will continue to invest in real estate assets across the UK, such as offices, shopping centers, and student housing. About 11% of the $331 billion portfolio is invested in real estate investments. About $20.7 billion, or 5%, of its total portfolio is invested in the United Kingdom.