Canada Pension Plan Investment Board (CPPIB) has announced that its wholly owned subsidiary, CPPIB Credit Investments Inc., has agreed to provide a £250 million subordinated facility to intu properties plc (intu). The subordinated facility will support intu’s corporate business plans and is indirectly secured by intu Trafford Centre in Manchester, U.K.
Manchester’s intu Trafford Centre is a 1.9-million-square-foot super-regional, prime shopping centre, and one of the U.K.’s top five shopping centres, counting many leading global retailers among its tenants. The property houses more than 230 stores, as well as more than 65 catering and leisure units, across its four arcades and two floors.
“This investment fits well with our strategy of providing customized, large-scale funding solutions to best-in-class operators of high-quality underlying real estate assets,” said Geoff Souter, Managing Director, Head of Private Real Estate Debt. “intu is a valued CPPIB partner and we look forward to continue partnering with them to support their growth objectives, while at the same time, delivering solid risk-adjusted returns for the CPP Fund.”
CPPIB and intu have joint ownerships in leading shopping centres in Spain, including intu Asturias in Oviedo and Puerto Venecia in Zaragoza.
“We are delighted to build on our relationship with CPPIB and this facility gives us further flexibility to progress our development pipeline, extending and enhancing our centres,” said Matthew Roberts, Chief Financial Officer, intu.