CPP Investment Board announced today that it has committed 400 million euros, or $573 million, to the ProLogis European Fund II (PEPF II) which focuses on acquiring and managing a diversified portfolio of core institutional-quality distribution facilities in Europe.

The CPP Investment Board’s equity investment represents approximately 17% of the total fund.

“By investing in the PEPF II, the CPP Investment Board is continuing its strategy of building relationships with world class developers and operators of commercial real estate,” said Graeme Eadie, senior vp, real estate investments, CPP Investment Board, in a release. “This investment will achieve attractive risk adjusted returns and will help us build a long-term core real estate holding at the same time. It also supports the CPP Investment Board’s focus to geographically diversify its real estate portfolio with further investments in Continental Europe and selected markets in Central and Eastern Europe.”

Based in Denver, ProLogis is the leading global developer and operator of distribution facilities in Europe. This fund commitment builds on other CPP Investment Board real estate transactions in Europe including its recent investments in the U.K. retail sector.