Source: The Canadian Press

Canada Pension Plan Investment Board and a partner have acquired a regional shopping centre near Cologne, Germany, for the equivalent of $223.4 million (157.3 million euros).

CPPIB will own 80% of the property, in the city of Hurth, Germany, while the remainder will be owned by LaSalle Investment Management, which will manage the shopping centre.

CPP Investment Board said the joint venture plans a redevelopment of the shopping centre. It formerly belonged to Degi Europe, which is now in liquidation.

“The German real estate market continues to be one of the key markets in Europe and is set to recover significantly with very good investment opportunities,” said David Ironside, managing director of LaSalle Germany.

Wenzel Hoberg, head of international real-estate investments for CPPIB, said “this investment is fully aligned with our international retail strategy to acquire prime retail shopping centres in key markets.”

CPP Investment Board invests funds that aren’t currently required by the Canada Pension Plan to pay for retiree benefits.

LaSalle is a member of the Jones Lang LaSalle group (NYSE:JLL), a leading global real-estate investment manager.