TORONTO (Reuters) - The Canada Pension Plan Investment Board (CPPIB) said on Friday a subsidiary will spend 376 million euros ($508.6 million) to take a 39 percent stake in private European car-park management company Interparking, buying the stake from AG Real Estate.
The investment by CPPIB’s wholly owned subsidiary, CPP Investment Board European Holdings, reduces Belgium-based AG Real Estate’s holding to 51 percent. Existing shareholder PARKIMO has a 10 percent stake in the company, CPPIB said.
Brussels-based Interparking has operations in nine countries in Europe, consisting of 657 car parks in 350 cities, with leading market shares in Belgium and Germany.
It is the first investment in the European car parking sector by CPPIB, which manages a fund pool of more than C$219.1 billion ($204.1 billion) for Canada’s national public pension plan and is a major global player in infrastructure and real estate.
“Interparking is a good fit with our infrastructure program because of the relatively stable, predictable cash flows available through its geographically diversified portfolio of high quality car parks, and this aligns well with CPPIB’s exceptional long-term investment horizon,” Andre Bourbonnais, CPPIB’s head of private investments, said in a statement.
Reporting by Andrea Hopkins; Editing by Peter Galloway