Canada Pension Plan Investment Board (CPPIB) has invested US$375 million in Raffles City China Investment Partners III (RCCIP III), CapitaLand’s third integrated development private investment vehicle in China.

RCCIP III will invest in prime integrated developments in gateway cities in China. CPPIB’s investment represents a 25% stake in the investment vehicle.

Jimmy Phua, managing director, Head of Real Estate Investments – Asia, CPPIB, said: “Investing in CapitaLand’s new China investment vehicle gives CPPIB the opportunity to expand on our long-term strategy of investing in high-quality commercial real estate in China to deliver solid risk-adjusted returns over the long term. We are very pleased to extend our partnership with CapitaLand, one of our longest standing real estate partners in Asia, and one of the most highly regarded real estate companies in the region.”

Lim Ming Yan, president & Group CEO of CapitaLand Limited, said: “RCCIP III is set to be another excellent example of how we are proactively working with strong capital partners like CPPIB to build up scale. We are very pleased to strengthen our long-standing relationship with CPPIB through the establishment of RCCIP III. As real estate capital values rise with the growing intensity of competition for assets, institutional investors are attracted to CapitaLand for its established footprint of quality real estate products and services across Asia. Our strong developer-owner-operator capabilities will enable us to deliver better risk-adjusted returns for investors.”