CPPIB Purchases Interest in New England Malls

On May 9, 2011, Canada Pension Plan Investment Board (CPP Investment Board) acquired a 36.9 per cent interest in a joint venture (the “Mayflower Partnership”) from institutional investors advised by JP Morgan Asset Management, for a total equity investment of US$350 million. The Mayflower Partnership owns a portfolio consisting of 13 regional shopping malls in the United States located primarily throughout the New England area. In aggregate, the portfolio has a total value of approximately US$2.03 billion.

Through the acquisition, CPP Investment Board will become partners with Simon Property Group, Inc. (NYSE: SPG), the largest US retail REIT, and Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA-CREF), one of the largest institutional real estate owners in the United States, who will both retain their existing interests of 49.1 per cent and 14 per cent respectively. Simon Property Group, Inc. will continue to manage the assets on behalf of the Mayflower Partnership. The portfolio comprises a 10.1 million-square-foot strategic footprint of well-established assets that primarily service the greater Boston area, and includes top-tier properties such as Northshore Mall in Massachusetts and the Mall at Rockingham Park in New Hampshire.

CPP Investment Board was represented in this transaction by Davies Ward Phillips & Vineberg LLP with a team that included Gerald Shepherd, Daniela Liscio and Inie Park (real estate and corporate) and Scott Semer and Peter Glicklich (tax) in New York and Greg Howard (real estate) in Toronto.

JP Morgan was represented by Stroock & Stroock & Lavan LLP by a team that included Diana Brummer and Elizabeth Galiano (real estate and corporate).