CPPIB buys £200m slice of ITV, Dow Chemicals and Halliburton's business park home

 
Oliver Gill
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The Royal Canadian Mounted Police force was formed almost 100 years ago (Source: Getty)

The Mounties... yep, they're on a spending spree again.

The Canadian Pension Plan Investment Board (CPPIB) today announced it has snapped a 50 per cent slice of one of Europe's largest business and tech parks in Oxford.

CPPIB stumped up £200m to buy the stake from Hermes Investment Management.

The park employs over 9,000 people across 250 organisations. Current tenants vary from ITV to Halliburton, DHL to Dow Chemicals.

Read more: £71bn Canadian fund: London will be Europe's financial centre post Brexit

CPPIB head of real estate investments in Europe Andrew Orlandi said the deal provided "a further opportunity to grow our existing relationship with Hermes".

Canadian pension funds have been prolific in making large investments into a wide range of assets in the UK. CPPIB investments include Anglian Water, IHS Markit and Westfield shopping centre.

Other active Canadian pension funds include PSP, which recently picked London as its new European base.

PSP has investments in Cerba HealthCare and a joint venture with Aviva real estate that includes 12 office buildings in Central London. Meanwhile, the Ontario Teachers Pension Plan owns interests in London City, Bristol and Birmingham airports as well as the High Speed 1 connection between London and the Channel Tunnel.

Hermes Investment Management head of private markets Chris Taylor said: “The deal marks another significant milestone in our growing relationship with CPPIB, which has already proved highly successful through our JV within central London and our collaboration at Wellington Place in Leeds and Paradise, Birmingham.

"Our interests are well aligned and, as such, we have been able to work together to deliver strong financial returns and positive impact upon society and the environment."

Read more: One of Canada’s largest pension fund firms is mulling a £6bn bid for Arqiva

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