CPP Investment Board and Osmington Inc. Invest $100 Million in Redevelopment of Centre Mall in Hamilton May 9, 2006
The CPP Investment Board and Osmington Inc. today announced it will invest $100 million in the redevelopment of Centre Mall in Hamilton, Ontario. Co-owner and operating partner Osmington Inc. will be leading the redevelopment plans for the shopping centre. Construction will begin in this fall and will be completed in phases by fall 2008.
Centre Mall is one of five shopping centres purchased jointly by the CPP Investment Board and Osmington Inc. in 2003 and was among the first real estate investments made by the CPP Investment Board.
It first opened in 1955 as an open-air mall. Centre Mall contains 750,000 square feet and is located at Barton Street and Kenilworth Avenue, near the city's downtown and serves a large regional area. The redevelopment plans call for the conversion of the mall into an 800,000 sq.ft. power centre format. Details on the redevelopment will be finalized in the summer of 2006, with major tenant announcements to follow.
According to Osmington Inc., the major redevelopment of this long-standing property in such a key location in downtown Hamilton will return the property to prominence as one of Hamilton's premier shopping destinations.
"Real estate offers attractive risk-adjusted returns that are a good match for the inflation-indexed benefits provided by the CPP," said Graeme Eadie, Vice-President Real Estate Investments, CPP Investment Board. "Shopping centres are a favourable investment as they help balance our Canadian real estate portfolio."
Together, CPP Investment Board and Osmington Inc. own 9 shopping centres across Canada.
The CPP fund's $4 billion real estate portfolio contains mostly office and retail commercial properties located in major centres across Canada including Vancouver, Calgary, Edmonton, London, Hamilton, Toronto, Ottawa, Montreal, Sherbrooke and Quebec City.
As at December 31, 2005, the CPP fund held $92.5 billion in assets including government bonds, publicly traded stocks, private equities, inflation-linked bonds, infrastructure and real estate.
According to the Chief Actuary of Canada, the CPP fund is expected to grow to $246 billion within the next decade and will be among the world's largest institutional investors. CPP Investment Board
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits. With a mandate from the federal and provincial governments, the CPP Investment Board is accountable to Parliament, to the federal and provincial finance ministers who serve as the stewards of the CPP and reports to 16 million contributors and beneficiaries. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.
For further information contact:
John Cappelletti, Manager, Communications
CPP Investment Board
416-868-0308
jcappelletti@cppib.ca. |
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