CPPIB, Longfor to develop two mixed-use projects in China

WCN Editorial Team 1 Feb 2018 ASIA BUSINESS

Canada Pension Plan Investment Board (CPPIB) and Longfor Properties (Longfor) have extended their cooperation to include two new mixed-use real estate development projects in Chengdu and Shanghai in China, for a total CPPIB commitment of RMB4.2bn ($665m).

The project in Chengdu, the capital of Sichuan province, comprises 740,000m2 for residential and commercial use. It is located in the eastern part of Chengdu and contains offers easy accessibility to the city centre.

The site will include a Paradise Walk shopping mall of 140,000m2. The residential component is expected to serve the increasing residential demands of Chengdu.

The Shanghai site is 340,000m2 and is situated in South Minhang. The project, which will consist of retail and commercial components, is located close to two universities, as well as the Zizhu technology hub.

This project also will include a Paradise Walk shopping mall.

Longfor is a residential and retail mall developer and operator in China. CPPIB and Longfor first collaborated in 2014 with a mixed-use real estate project in Suzhou, which included a Paradise Walk mall.

CPPIB managing director and head of Real Estate Investments Asia, Jimmy Phua, said: “We are pleased to extend our existing relationship with Longfor Properties, one of the top real estate developers in China, through these development projects in Chengdu and Shanghai.

“Both cities are well-positioned to capitalise on the future economic growth and harness the returns of growing consumption in China.

“These projects deliver on CPPIB’s strategy to grow our investments in the Chinese real estate sector, specifically in the fast-growing retail sector. The investments will help CPPIB diversify its real estate interests in China, providing attractive risk-adjusted returns over the long term.”

Longfor Properties executive director and CFO Zhao Yi said: “We look forward to further extending our cooperation with CPPIB. These investments are another set of landmarks in our work together, following the Suzhou Times Paradise Walk and Chongqing West Paradise Walk projects.

“The mixed-use sites in Chengdu and Shanghai are both ideally located, high-quality assets that are expected to offer strong future returns. Our expertise in real estate development as well as in mall operations and management will help us deliver value to our shareholders and partners.”

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