- CPP Investments will hold a 47.5 percent stake in the JV
- As part of this JV, the partners have agreed to acquire an initial 1.5 million square-foot medical facility portfolio across 24 properties
Canada Pension Plan Investment Board has teamed up with IRA Capital to invest in medical outpatient buildings.
CPP Investments is allocating an initial US$143 million of equity capital to the joint venture, which will have an expected acquisition capacity of about US$850 million.
CPP Investments will hold a 47.5 percent stake in the JV.
“The program will target modern outpatient care facilities in growing U.S. communities, where demand is supported by demographic trends and the shift of services from hospitals to outpatient settings,” said Sophie van Oosterom, managing director, head of real estate at CPP Investments in a statement. “We are pleased to establish this program with IRA Capital to invest in high-quality medical facilities across resilient markets, where effective management of the assets can enhance tenant experience and retention. This investment will help deliver long-term, risk-adjusted returns to the CPP Fund for the benefit of CPP contributors and beneficiaries.”
As part of this JV, the partners have agreed to acquire an initial 1.5 million square-foot medical facility portfolio across 24 properties. The assets include on-campus and advanced outpatient care facilities that support physicians and health-system partners.