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Canadian pension fund invests US$375m in CapitaLand's third China fund

CANADA Pension Plan Investment Board (CPPIB) said on Tuesday that it has made an investment of US$375 million in the US$1.5 billion integrated development fund set up by CapitaLand Limited.

CPPIB's investment represents a quarter stake in the investment vehicle.

The fund, known as Raffles City China Investment Partners III (RCCIP III) will invest in prime integrated developments in gateway cities in China. It has a life of eight years.

"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," said Jimmy Phua, managing director and head of real estate investments in Asia at CPPIB.

A 41.7 per cent sponsor stake in RCCIP III is taken up by CapitaLand while the remaining interests will be held by major investors from Asia, North America and the Middle East, including new and existing investors.