The Canada Pension Plan Investment Board (CPPIB) has announced its recent venture. The Toronto-based pension plan company has formed a new joint venture with West Coast Health Care REIT Inc.
Reuters reports that the joint venture has been formed on Tuesday between two different companies. Based on reports, CPPIB will own 45% stake while the Health Care REIT Inc. will own the remaining 55% in the said joint venture.
In addition, the venture will be in Southern California, and it will hold a "portfolio of medical office buildings." In an interview, CPPIB head of real estate investments in the Americas Peter Ballon said that the purchase initiates "their entry into the health care real estate sector" which he described as a rising and fascinating sub-sector within the real estate market. . "With an aging population and increasing demand for health care, we view the U.S. health care real estate sector as an attractive long-term investment," Ballon added.
It has also been noted that the portfolio has a value of $449 million, which consists of medical office buildings that are located in San Diego, Beverly Hills, and some other parts of Los Angeles, California.
The Wall Street Transcript says that the joint venture of Canada Pension Plan Investment Board (CPPIB) and Health Care REIT Inc. will increase its stake to 100% "if or when the seller converts their operating partnership units into HCN stock or cash."
The WST has also reported the complete description of the portfolio. According to its report, the 8 medical offices have a total of 437,875 square feet. Most of these real estate properties are located within the Golden Triangle district of Beverly Hills, California. But the rest are in the areas of L.A markets and San Diego. The properties in Beverly Hills are considered as premier medical offices since it has the characteristics of a handsome "supply and demand."
