September 18, 2003
The CPP Investment Board, in a joint venture with Retirement Residences REIT, announced today the completion of the purchase of Lifestyle Retirement Communities Ltd. and two other retirement homes.
Fifteen properties were purchased from Lifestyle Retirement Communities, a wholly owned subsidiary of London Life Insurance Company, and two properties, operated by Lifestyles, from The Great-West Life Assurance Company.
The purchase price of approximately $410 million includes the assumption of existing debt, new debt and working capital. The CPP Investment Board and Retirement Residences REIT formed a joint venture and announced the proposed investment in July. Under the business terms of the joint venture, the partners will each have a 50% economic interest in the acquisition. Retirement Residences REIT will provide management services to the joint venture and will operate the 17 retirement homes. The joint venture is part of the CPP Investment Board’s long-term strategy to diversify the CPP portfolio and invest up to five percent of its assets in real estate. “We look for opportunities to invest with experienced real estate managers,” says Mark Weisdorf, Vice President – Private Market Investments, CPP Investment Board. “We’re patient, long-term investors and we invest when excellent opportunities arise.” Real estate currently accounts for one percent of the assets of the CPP Investment Board.
The retirement homes, which are located in British Columbia, Manitoba and Ontario, can accommodate 2,207 residents. CPP Investment Board Created in December 1997, the CPP Investment Board is a crown corporation that invests funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are invested in equities and real estate to balance the bond portfolio owned by the Canada Pension Plan. The CPP Investment Board manages $23.6 billion of the $61.6 billion CPP portfolio. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. Located in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. For more information on the CPP Investment Board, visit www.cppib.ca.
For further information contact:
Vice President – Communications and Stakeholder Relations
Communications and Stakeholder Relations