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The Canada Pension Plan Investment Board and Health Care REIT have formed a 45-55 joint venture to invest in a $449 million portfolio of medical office buildings in Southern California.
“This acquisition marks our entry into the healthcare real estate sector, a growing and compelling subsector within the real estate market. With an aging population and increasing demand for healthcare, we view the U.S. healthcare real estate sector as an attractive long-term investment," said Peter Ballon, managing director, head of real estate investments Americas, in a statement.
The joint venture will initially own a 50.5 percent interest in the portfolio and the seller, which contributed the portfolio in exchange for a mix of operating partnership units and cash, will retain a 49.5 percent ownership stake.
The portfolio comprises eight