PSP investing in U.K. real estate, OTPP issuing green bond

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Aerial view of the city of Cambridge, UK © claudiodivizia /123RF Stock PhotosThe Public Sector Pension Investment Board and Aviva Investors are jointly funding a new office building in Cambridge, England.

The six-storey building has been fully pre-let to a flexible workspace provider, according to a press release that noted construction is expected to be completed in 2023. It’s the latest investment in Cambridge real estate by the partnership, which agreed in November 2019 to invest up to £250 million in commercial property across the 26-acre CB1 Estate.

“The continuation of our partnership with Aviva Investors in Cambridge reflects our confidence in the city’s long-term performance potential as a centre of innovation,” said Stéphane Jalbert, managing director for Europe and Asia Pacific real estate investments at the PSP, in the release. “Cambridge’s world-leading education and research institutions act as a hub and anchor for the artificial intelligence and life science disciplines, making the region a key knowledge cluster driving future performance.”

In other investment news, the Ontario Teachers’ Pension Plan’s finance trust is issuing a €750 million 10-year green bond.

An amount equal to the net proceeds from this issuance will be allocated to assets that are environmentally and socially responsible and tackle critical issues like climate change, according to a press release. This marks the inaugural green bond issued under the Ontario Teachers’ green bond framework.

“We believe a transition to a net-zero economy is underway,” said Ziad Hindo, chief investment officer at the Ontario Teachers,’ in the release. “This is expected to bring a host of attractive investments to Ontario Teachers’ that enable and support this transition, with the objective of earning strong risk-adjusted returns while also having a positive impact. OTFT’s green bond issuance allows us to access capital to support the much-needed investments to transition towards a sustainable future.”

Meanwhile, the Canada Pension Plan Investment Board, through its wholly-owned subsidiary CPPIB Credit Investments Inc., is committing US$98 million to a bilateral financing transaction in India.

The transaction will support a strategic investment by JSW Projects Ltd. in iron producer BMM Ispat Ltd. and represents the first direct onshore credit exposure in India by the CPPIB, according to a press release.

“The transaction marks a significant milestone for CPP Investments’ credit investment program in India,” said Raymond Chan, the organization’s managing director and head of Asia Pacific credit, in the release. “Emerging markets are a significant part of our long-term strategy and India is a key component of that. We see great opportunities in providing long-term, stable capital to finance India’s growth cycle.”

And the Caisse de dépôt et placement du Québec is part of a consortium of global investors contributing to an $800-million capital raise by Inigo Ltd., a new insurance group.

The funds will provide a capital base for Inigo to open, subject to approvals, in 2021, said a press release. The consortium also includes Enstar Group Ltd., J.C. Flowers & Co., Oak Hill Advisors, Qatar Investment Authority, Stone Point Capital and Inigo’s management team.

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