The Canadian Pension Plan Investment Board (CPPIB), one of the country's largest pension funds, has made its second major foray in Birmingham this year after buying a stake in the vast £1bn Paradise regeneration scheme in the city centre.
CPPIB said it will take a 50 per cent stake in the £150m first phase of the scheme alongside Hermes Investment Management, which owns the 1.8m sq ft development in partnership with Birmingham city council.
It is also its second partnership with Hermes after buying a share of Wellington Place, a 1.5m sq ft business quarter being developed in the centre of Leeds.
Paradise Birmingham is one of the largest development projects in the UK and comprises of sprucing up the city's civic centre with new offices, shops, cafes, restaurants and a hotel across 10 buildings.
The first phase of the project, which started late last year, includes building two new office buildings which were granted planning permission in autumn last year, major infrastructure improvements and public realm around Chamberlain Square, as well as the demolition of existing buildings.
The site is being developed by Argent, which is also working with Hermes on the regeneration of London's King's Cross.
Chris Taylor, head of private markets at Hermes, said: “The partnership with CPPIB is testament to our well-established relationship and the confidence that we are seeing in Birmingham as a leading business destination."
CPPIB managing director Andrea Orlandi, said: “The Paradise Birmingham development is a high-quality real estate investment in an important region in the UK, and fits well with our long-term investment approach.”