PSP invests in Italian real estate, CPPIB in French higher education group

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Milan skyline silhouette in colorful geometric style. Symbol for your design. Vector illustration. © greens87 /123RF Stock PhotosThe Public Sector Pension Investment Board is establishing a long-term strategic partnership with property and infrastructure firm, Lendlease Corp. to develop an urban regeneration project in Milan, Italy.

The Milano Santa Giulia mixed-use project has the long-term potential for up to 2,500 homes, coupled with commercial office, retail and entertainment properties. It has also set a zero-carbon target and will include parkland. Overall the site has a gross development value of  €2.5 billion. The partnership will involve an initial investment of about €250 million to buy two office buildings at the southern tip of the site, with the intention to later carry out development over the northern part of the site, building residential, office and retail components. Lendlease will lead the planning, design and development of the project over the coming decade.

“We believe Milano Santa Giulia presents an exciting opportunity to create a vibrant new neighbourhood for Milan, built around the principles of innovation and sustainability and we look forward to working with our new partners Lendlease on this project,” noted Stephane Jalbert, managing director of real estate investments for Europe and Asia Pacific at PSP Investments, in a press release.

In other investment news, the Canada Pension Plan Investment Board, along with a consortium of other investors, has completed its previously announced acquisition of Galileo Global Education, a French higher-education group.

The consortium consists of the CPP Investment Board Europe, a wholly-owned subsidiary of the CPPIB, as well as Montagu Private Equity, Téthys Invest Management and investment bank Bpifrance. The education group includes 42 schools throughout 13 countries and is seeking to expand through acquisitions.

“We look forward to supporting Galileo as it evolves its unique global platform in the higher education sector, to continue to deliver high-quality, innovative and flexible courses to students around the world, adapting to challenges and leveraging the use of technology,” said Alain Carrier, senior managing director and head of international at the CPPIB, in a press release. “CPP Investments is confident that Galileo — through its management and teaching staff — will build long-term value in the business for the benefit of CPP contributors and beneficiaries.”

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