CPPIB Credit Investments, a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB), has agreed to participate in A$500 million ($370 million) of seed lending to a newly established fund with Challenger Investment Partners (CIP) to invest in middle-market real estate loans in Australia and New Zealand. CIP will source and manage investments on behalf of the fund.
“This partnership marks our first real estate debt investment in Australia and New Zealand,” said Geoffrey Souter, managing director, head of private real estate debt, CPPIB.
The fund will look to provide alternative financing to owners of well-located properties in key gateway cities across Australia and New Zealand. CIP will originate senior and subordinated loans, backed by stabilized, transitional and development assets.
“This new partnership with CIP is a further step in the expansion of CPPIB’s investment activities into new asset classes across Asia Pacific,” said Suyi Kim, senior managing director and head of Asia Pacific, CPPIB. “This region offers CPPIB attractive investment opportunities supported by strong fundamentals, and it remains a high priority for our growth.”
