CPP Investments: Difference between revisions

Revision as of 06:29, 30 July 2025

Revision as of 20:33, 8 August 2025

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In 2009 CPPIB also invested in the $5.2-billion purchase of [[IMS Health]] with [[TPG Capital|Texas Pacific Group]] and the $2.1-billion purchase of [[National Transmission Agency#Review and privatisation|Macquarie Communications Group]].<ref name=GM01/>

In 2011, the CPPIB managed to increase net assets by 18%, from $129 billion to $153 billion, despite weakness in stock markets. The increase was due to the fund's private equity holdings and real estate portfolio.<ref>https://www.cbc.ca/news/business/canada-pension-plan-assets-rise-18-1.1096110 {{Bare URL inline|date=August 2025}}</ref>

In 2012 CPPIB acquired a 45% stake in ten shopping centers and two redevelopment sites from [[Westfield Group]]. CPPIB's equity investment was $1.8 billion and the total gross value of the properties was $4.8 billion.<ref>{{Cite web|url=http://www.cppib.com/media/documents/CPPIB_Press_Release_-_Westfield_JV_February_14_2012_-_for_website.pdf|title=CPPIB Press Release|access-date=2017-11-16|archive-date=2017-11-16|archive-url=https://web.archive.org/web/20171116083310/http://www.cppib.com/media/documents/CPPIB_Press_Release_-_Westfield_JV_February_14_2012_-_for_website.pdf|url-status=dead}}</ref>

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In March 2016, [[Brookfield Corporation]], the [[British Columbia Investment Management Corporation]] (BCI), [[Qatar Investment Authority]], and Qube, a group that includes CPPIB, made a joint $6B bid for Australian port operator Asciano.

<ref>https://www.cbc.ca/news/business/brookfield-asciano-1.3492607 {{Bare URL inline|date=August 2025}}</ref>

In July 2016, CPPIB and [[Calgary]]-based Wolf Midstream Inc. purchased a 50% stake in [[Devon Energy]]'s Access Pipeline located in [[Alberta]].<ref name="devonspipe">{{cite news|url=http://www.cbc.ca/news/canada/calgary/canada-pension-plan-investment-board-alberta-pipeline-1.3678739| title=Canada Pension Plan and Wolf Midstream invest big in Alberta pipeline| date=July 14, 2016| access-date=July 7, 2017| publisher=[[CBC News]]}}</ref>

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In November 2019, it was reported in India that CPPIB and [[Brookfield Corporation]] were seeking to buy out the stakes of other investors into India's largest [[green power]] company, [[ReNew Energy Global]]. Brookfield, was looking to buy out [[Abu Dhabi Investment Authority]], and CPPIB bought out [[Goldman Sachs]] in 2023 to become the majority owner.<ref>{{cite web | url=https://www.eqmagpro.com/exclusive-canadas-cppib-brookfield-eyeing-more-than-1-bn-investment-in-renew-power/ | title=Exclusive {{pipe}} Canada's CPPIB, Brookfield eyeing more than $1 bn investment in ReNew Power | date=15 November 2019 }}</ref>

In January 2021, CPPIB and [[Greystar]] announced they were partnering to pursue multifamily real estate development opportunities in the United States.<ref>{{cite web | url=https://www.greystar.com/about-greystar/newsroom/cppib-us-mf-jv | title=CPPIB US MF JV {{pipe}} Greystar }}</ref> Greystar, the largest apartment owner in the United States with over 108,500 units, teamed up with Ottawa-based Minto Apartment [[Real Estate Investment Trust]] also in 2021.<ref>https://www.costar.com/article/1217169874/greystar-appoints-john-wilbeck-as-head-of-rental-giants-canada-operations {{Bare URL inline|date=August 2025}}</ref> In December, Peter Ballon, then Managing Director and Global Head of Real Estate, announced a 95% stake in an US$840 million alliance with Greystar to develop and acquire purpose-built single-family rental communities in the United States.<ref>{{cite web | url=https://www.cppinvestments.com/newsroom/cpp-investments-and-greystar-form-u-s-purpose-built-single-family-rental-joint-venture/ | title=CPP Investments and Greystar Form U.S. Purpose-Built Single-Family Rental Joint Venture }}</ref>

In November 2022, CPPIB bought [[Brookfield Corporation]]'s portfolio of Indian road assets for $1.2 billion.<ref>{{cite web | url=https://mnacritique.mergersindia.com/news/cpp-investments-to-buy-brookfields-india-roads-portfolio-in-rs-9-3k-crore-deal/ | title=CPP Investments to buy Brookfield's India roads portfolio in Rs 9.3k crore deal {{pipe}} M&A Critique | date=11 June 2022 }}</ref>

CPPIB pledged up to $30 million to plant trees in Brazil, in August 2023.<ref>https://financialpost.com/fp-finance/cppip-joins-100-million-amazon-reforestation-fund {{Bare URL inline|date=August 2025}}</ref><ref>{{cite web | url=https://www.bbc.com/news/articles/c9vy191rgn1o | title=Amazon rainforest cut down to build highway for COP climate summit | date=12 March 2025 }}</ref>

In December 2023, CPPIB Credit Investments III Inc., teamed up with [[Blackstone Inc.|Blackstone]]'s BREDS and [[BREIT]], and [[Rialto Capital Management]], to take over 2,600 mostly performing loans from a failed bank. The loans were on market rate multifamily, retail and office properties primarily located in the New York metropolitan area.<ref>{{cite web | url=https://www.stblaw.com/about-us/news/view/2023/12/15/breds-breit-and-others-acquire-20-equity-stake-in-jv-holding-approximately-$17-billion-commercial-real-estate-loan-portfolio-of-former-signature-bank | title=BREDS, BREIT and Others Acquire 20% Equity Stake in JV Holding Approximately $17 Billion Commercial Real Estate Loan Portfolio of Former Signature Bank }}</ref>

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In 2024, CPPIB Credit Investments Inc. announced a US$750 million partnership with Redwood Trust, Inc., into residential mortgage assets, and a joint venture with Kennedy Wilson to develop a single-family rental housing in the United Kingdom.<ref>{{cite web | url=https://www.cppinvestments.com/newsroom/redwood-trust-and-cpp-investments-announce-us750-million-strategic-capital-partnership/ | title=Redwood Trust and CPP Investments Announce US$750 Million Strategic Capital Partnership }}</ref><ref>{{cite web | url=https://www.cppinvestments.com/newsroom/cpp-investments-partners-with-kennedy-wilson-to-launch-new-uk-single-family-rental-housing-joint-venture-targeting-1-billion-in-real-estate/ | title=CPP Investments Partners with Kennedy Wilson to Launch New UK Single-Family Rental Housing Joint Venture Targeting £1 Billion in Real Estate }}</ref>

A [[Bloomberg News|Bloomberg]] report revealed Canadian pension funds lost $1.24 trillion on their real estate holdings in fiscal 2024.<ref>{{cite web | url=https://www.mpamag.com/ca/news/general/canadian-pension-funds-rethink-real-estate-investments-after-124trn-loss/494412 | title=Canadian pension funds rethink real estate investments after $1.24trn loss }}</ref> CPPIB reported a 5% loss, while the [[Public Sector Pension Investment Board]] (PSPIB) lost 16%.<ref>{{cite web | url=https://www.kelownarealestate.com/blog-posts/real-estate-downturn-hits-canadian-pension-funds-losses-mount | title=Real Estate Downturn Hits Canadian Pension Funds: Losses Mount }}</ref> By February 2024, CPPIB had sold its stakes in three commercial properties at discounted prices: a Santa Monica property at a 75% discount for its share purchased in 2018; two towers in Vancouver for 20% less than what it was valued in 2023; and, its share in a Manhattan office building for $1.<ref>https://financialpost.com/fp-finance/cppib-1-dollar-office-tower-deal-anxiety-longtime-buyers {{Bare URL inline|date=August 2025}}</ref>

In January 2025, CPPIB announced a 95% stake in a $500 million joint rental-housing venture in Korea with Mangrove (MGRV); an equal partnership with [[Cyrela Brazil Realty]] to develop residential condominiums in São Paulo, Brazil; and, sold its 49% stake in a retail and residential development in China, with [[Longfor Properties]].<ref>{{cite web | url=https://www.cppinvestments.com/newsroom/cpp-investments-and-mgrv-establish-rental-housing-joint-venture-in-korea/ | title=CPP Investments and MGRV Establish Rental Housing Joint Venture in Korea }}</ref><ref>{{cite web | url=https://www.cppinvestments.com/newsroom/cpp-investments-forms-joint-venture-with-leading-brazil-real-estate-developer-cyrela/ | title=CPP Investments Forms Joint Venture with Leading Brazil Real Estate Developer Cyrela }}</ref><ref>{{cite web | url=https://www.cppinvestments.com/newsroom/cpp-investments-sells-stake-in-four-real-estate-joint-venture-projects-in-china/ | title=CPP Investments Sells Stake in Four Real Estate Joint Venture Projects in China }}</ref>

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As worldwide concern for global climate change implications increasingly call on institutional divestment from fossil fuels, CPPIB has also been criticized for failing to do so, both on climate grounds<ref>{{cite web|title=A Fix for the Climate Polluting Canada Pension Plan : Friends of the Earth Canada|url=https://foecanada.org/en/2016/06/a-fix-for-the-climate-polluting-canada-pension-plan/|website=foecanada.org|date=June 2016|access-date=22 December 2017|language=en-CA}}</ref> and financial loss.<ref>{{cite web|title=How not divesting from carbon economy has already hurt your pension|url=http://www.cbc.ca/news/business/corporate-knights-fossil-fuel-divestment-1.3321265|website=CBC News|access-date=22 December 2017|language=en}}</ref><ref>{{cite web|last1=Fillmore|first1=Nick|title=Canada Pension Plan Knee-Deep In Unethical Fossil Fuel Stocks|url=http://www.huffingtonpost.ca/nick-fillmore/canada-pension-plan-fossil-fuels_b_12913508.html|website=HuffPost Canada|access-date=22 December 2017|language=en-CA|date=14 November 2016}}</ref>

CPPIB and other institutional investors involved in rental housing and REITs, have been blamed for rising rents and evictions, and hailed for increasing and renovating supply, in Canada and abroad. The financialization of housing has become a prominent political debate in Canada.<ref>{{cite web | url=https://www.taxfairness.ca/en/resources/reports/how-tax-breaks-are-worsening-canadas-housing-affordability-crisis | title=How tax breaks are worsening Canada's housing affordability crisis {{pipe}} Canadians for Tax Fairness }}</ref><ref>https://www.cbc.ca/news/politics/ndp-housing-landlord-limits-1.7496836 {{Bare URL inline|date=August 2025}}</ref> In 2022, then Prime Minister [[Justin Trudeau]] promised to address the issue with new tax policy but abandoned this idea in May 2024.<ref>https://financialpost.com/real-estate/liberal-ndp-power-pact-promises-to-tackle-housing-costs-may-target-reits {{Bare URL inline|date=August 2025}}</ref><ref>{{cite web | url=https://globalnews.ca/news/10531736/trudeau-housing-prices-affordability/#:~:text=With%20Canada%27s%20housing%20crisis%20playing%20a%20key%20role,housing%20in%20Canada%20needs%20to%20%22retain%20its%20value.%22 | title=Trudeau wants to maintain home prices while pushing affordability. Is it possible? - National {{pipe}} Globalnews.ca }}</ref>

In May 2019, [[Conservative Party of Canada|Conservative]] MP [[Tom Kmiec]] ([[Calgary Shepard]]) criticized the CPPIB during a meeting of the [[Canadian House of Commons Standing Committee on Finance]] for its indirect investments in two Chinese firms, [[Hikvision]] and [[Dahua Technology]], which supply surveillance technology to the Chinese government used to repress [[Uyghurs]] in China's western [[Xinjiang]] region.<ref name="fp cppib committee">{{Cite news|date=2019-05-30|title=CPPIB challenged to divest from Chinese firms tied to abuses against Uyghurs |work=Financial Post|url=https://business.financialpost.com/pmn/business-pmn/cppib-faces-pressure-to-divest-from-some-chinese-firm-investments|agency=The Canadian Press|access-date=2020-07-02|language=en-CA}}</ref> CPPIB CEO Mark Machin stated that the holdings are part of indices which CPPIB invests in and that those investments had been red-flagged for potential future divestment.<ref name="fp cppib committee" />