TORONTO (Reuters) - The Canada Pension Plan Investment Board (CPPIB) said on Thursday it will invest $108 million to increase its stake in a Manhattan office property and signaled it is looking for more U.S. office real estate in key markets.
The investment takes the pension fund manager’s stake in One Park Avenue to 45 percent through a joint venture with Vornado Realty Trust (VNO.N). CPPIB previously held an indirect stake of about 11 percent through its investment in the Vornado Capital Partners Parallel LP fund.
The property is valued at $560 million, including the assumption of $250 million of debt, CPPIB said in a statement.
One Park Avenue is a 20-story office building in midtown Manhattan, and will continue to be managed by Vornado, it said.
CPPIB, which manages a fund pool of over C$219.1 billion ($201.9 billion), said its U.S. office strategy is to acquire high-quality assets in major cities.
“We look forward to further expanding our relationship with Vornado as we continue to build our office portfolio in the U.S.,” Peter Ballon, CPPIB head of real estate investments in the Americas, said in a statement.
Reporting by Andrea Hopkins; Editing by Nick Zieminski