The CPP Investment Board (CPP IB) announced today that it has closed a US$500 million real estate transaction that includes a US$300 million investment in a joint venture which will invest in Class A office properties in the United States, and a US$200 million investment in a TIAA-CREF Asset Management direct real estate investment strategy.

All assets will be managed by the Global Real Estate group of TIAA-CREF Asset Management.

The total commitment to the joint venture is US$612 million in equity of which TIAA-CREF will contribute 51% (US$312 million) and will provide asset management services, and the CPP Investment Board will contribute 49% (US$300 million). Including debt, the gross value of the venture is expected to reach approximately US$1.5 billion. TIAA-CREF has seeded the joint venture with two suburban Class A office properties in California, near San Francisco, and in McLean, Virginia, just outside of Washington, D.C.

Going forward, the joint venture will invest in large cap, Class A office properties with a gross value ranging from US$100 million to US$200 million. The investment focus is on strategic acquisitions of partially leased office properties in stable or recovering metropolitan areas with at least 500,000 residents.

In addition, the CPP IB has made a US$200 million commitment to a TIAA-CREF Asset Management direct real estate investment strategy which primarily focuses on institutional-quality U.S. real estate assets.

“We are pleased to partner with TIAA-CREF Asset Management which is a knowledgeable, long-term investor in the U.S. real estate market,” said Graeme Eadie, senior vp of real estate investments at CPP IB. “Our investment significantly increases our exposure in the U.S. real estate market which supports our focus of diversifying the overall CPP Investment Board portfolio by product type and geography.”

“We look forward to working with the CPP Investment Board, an institution which shares our long-term investment perspective,” said executive vp and head of TIAA-CREF Asset Management, Scott Evans. “This partnership speaks to our commitment to building relationships with high quality institutional investors by providing investment solutions centered on our nearly 90 years of portfolio management experience.”

With more than US$405 billion in combined assets under management as of December 31, 2006, TIAA-CREF Asset Management is best known as the leading provider of retirement services in the academic, research, medical and cultural fields and one of the largest institutional real estate investors in the U.S. with more than US$60 billion invested in real estate assets.