The Canada Pension Plan Investment Board explained that it will create a commercial real estate office tower development through a joint venture with Lend Lease Corporation and the Australian Prime Property Fund for C$2.08 billion (USD $2 billion).
The property, which consists of office towers in the Barangaroo South Project, is located in the central business district of Sydney. CPPIB will pay for half of the project, while the other two partners will each contribute one-quarter of the funds.
"We will be able to gain a significant exposure in Sydney's Central Business District through a premium-grade office development offering the tenants highly efficient and environmentally sensitive facilities," said Graeme Eadie, senior vice president of real estate investments for CPPIB. "This investment supports our real estate strategy to acquire premium, long term assets in key global markets."
The buildings will have 41 and 38 floors, respectively, with close to 1.8 million square feet of space, with 73,625 square feet of leasable retail space. There are plans for a tentative third tower on the property at some point in the future.