The Canada Pension Plan Investment Board today announced it is paying $270 million for a half-interest in a shopping centre in Canterbury, England, and investing $320 million in a British retail-properties fund.

The 50-50 venture with London-headquartered Henderson Global Investors to acquire Whitefriars Quarter is worth £253 million, or about $540 million.

In addition to its stake in Whitefriars Quarter, a 600,000-square-foot retail space in Canterbury, the CPP has invested £150 million pounds, about $320 million, in the Henderson UK Shopping Centre Fund, which holds interests in four British retail complexes.


The stake in Whitefriars Quarter and the Henderson fund “provides a logical expansion of our UK retail strategy, which is to generate strong long-term returns by acquiring interests in quality properties alongside knowledgeable partners,” said Graeme Eadie, the CPP board’s senior vp of real estate investments, in a release.

Myles White, manager of the Henderson fund, said it offers “returns of over 10%: and Whitefriars Quarter “is a superb asset that shows strong growth potential for our investors.”

The CPP Investment Board, which invests money not needed to pay current Canada Pension Plan benefits, has been casting a wide net to diversify and inflation-proof its assets, which at March 31 stood at $116.6 billion.