Canadian pension fund manager invests in Malaysian real estate

Canada Pension Plan Investment Board, the largest pension fund manager in Canada and one of its most active dealmakers, said on Tuesday it has invested C$170 million ($130 million) in a Malaysian real estate joint venture, marking its first direct real estate investment in Southeast Asia.

Toronto-based CPPIB said along with the Pavilion Group it has formed a venture to invest in Pavilion Damansara Heights, a mixed-use development project in Kuala Lumpur, Malaysia’s largest city.

The project is a freehold development that integrates corporate towers, luxury residences and a retail galleria located less than 10 kilometers (6.2 miles) from Malaysia’s iconic Petronas Twin Towers.

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“This joint venture fits well with our investment strategy as it provides us with a great opportunity to work with a smart partner in a high-quality real estate asset that will provide attractive risk-adjusted returns over the long term,” Jimmy Phua, CPPIB’s head of real estate investments in Asia, said in a statement.