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Deal Wrap Up: The Big 5

February 13, 2020

From the sale of a European car park to making our mark in Indonesia’s infrastructure space – a look at recent deals that are charting the course for the future

1: Parking It

Infrastructure

When and Where: October 2019; Canada, United Kingdom and the Netherlands

The Deal: We sold our 39% stake in Interparking, a leading car park owner and operator in Europe, to APG of the Netherlands for net proceeds of approximately €590 million (C$870 million).

The Players: APG is the largest pension delivery organization in the Netherlands. Interparking is a leading pan-European car park owner and operator with a portfolio of 949 car park sites in 416 cities across nine countries.

The Upshot: Over the last five years, CPP Investments contributed to the professional development of Interparking, which designs, builds, operates and maintains high-quality car parks across Europe. For APG, their investment in Interparking offers a sustainable long-term business model with strong growth and robust cash generation through its established pan-European platform and its resilient diversified car park portfolio.

The Strategy: Interparking has been an important part of our European infrastructure portfolio for a number of years. Our partnership with our co-investors – AG Real Estate and Parkimo – and the Interparking management team has been very positive, and has contributed to the company’s continued success as a leading owner and operator of high-quality car parks across Europe.

Read more

 

2: Infrastructure team drives home first Indonesian investment

Infrastructure

When and Where: September 2019; Canada, Australia, Hong Kong and Indonesia

The Deal: Our infrastructure team marked its first investment in Indonesia with the acquisition of a 45% interest in PT Lintas Marga Sedaya, the concession holder and operator of one of that country’s longest toll roads, the Cikopo-Palimanan (Cipali). We made the investment with our local partner, PT Baskhara Utama Sedaya (BUS), and jointly acquired a 55% interest in PT Lintas Marga Sedaya from PLUS Expressways International Berhad. BUS was an existing owner of 45% of PT Lintas Marga Sedaya, and increased its stake to 55%. CPP Investments acquired the remaining 45% stake in PT Lintas Marga Sedaya.

The Players: PT Lintas Marga Sedaya is the concession holder and operator of the Cikopo-Palimanan toll road, known to locals as Cipali. BUS is a wholly owned subsidiary of PT Astra Tol Nusantara. PLUS Expressways International Berhad is a subsidiary of the UEM Group.

The Upshot: At 117 kilometres, the Cipali toll road is one of the longest operational toll roads in Indonesia, and a critical link in the transportation network of the island of Java as part of the Trans Java Toll Road network. It serves as a thoroughfare within West Java, which is Java’s most populous and fastest growing province, and it also connects West Java and suburbs of Jakarta with the rest of Java.

The Strategy: As CPP Investments’ first infrastructure investment in Indonesia, this deepens the Fund’s commitment to the Asia-Pacific region as well as our focus on investments in new markets with attractive return and risk characteristics. The Cipali toll road also provides CPP Investments access to a vital infrastructure development supported by rising motorization rates in one of the most densely populated and economically productive regions in Indonesia.

Read more

 

3: Investing in India-based logistics provider

Logistics

When and Where: September 2019; Canada, Hong Kong and India

The Deal: A US$115 million investment in Delhivery Pvt Ltd., broadening exposure to the logistics sector in India. In keeping with CPP Investments’ commitment to portfolio company corporate governance, CPP Investments will have a seat on Delhivery’s Board of Directors.

The Players: Delhivery is one of India’s leading third-party logistics providers, which operates in more than 2,000 cities (with more than 17,500 pincodes), offering a full range of supply chain services. Delhivery is a highly reputable partner that fits well with the CPP Investments’ focus on supporting high-growth businesses.

The Upshot: The investment will help to support Delhivery in their next phase of growth and back Delhivery on their long-term ambition of becoming the operating system for commerce in India.

The Strategy: The continued strong growth of e-commerce has generated significant opportunities in India’s express logistics space for long-term investors. This investment in Delhivery builds on our Fundamental Equities Asia group’s strategy to provide strategic capital to high-quality companies in the region.

Read more

 

4: Joint venture to develop office campus in San Jose

Real Estate

When and Where: October 2019; Canada and United States

The Deal: A joint venture between Boston Properties, Inc. and CPP Investments to develop Platform 16, a 1.1-million-sq.-foot Class A urban office campus in downtown San Jose, California. CPP Investments will have a 45% ownership interest, and Boston Properties will retain the remaining 55% ownership stake and provide customary development, property management and leasing services.

The Players: Boston Properties, Inc. is the largest publicly traded developer and owner of Class A office properties in the United States. Platform 16 is located on a 5.4-acre site and is adjacent to Google’s planned eight-million-square-foot transit village and Diridon Station, the largest multi-modal transportation hub in the Bay Area. This agreement is the second joint venture between Boston Properties and CPPIB, following the Santa Monica Business Park campus in 2018.

The Upshot: This joint venture will support the development of the planned three-building campus. Expect the buildings to feature large floorplates ranging from approximately 25,000 to 90,000 square feet, 15-foot floor-to-floor heights, and 16 large outdoor terraces (that give the project its name), along with multiple indoor and outdoor workspaces and on-site amenities, including a large fitness and wellness facility and conference center. Platform 16 will have immediate access to the adjacent Guadalupe River Park and various retail and restaurant amenities.

The Strategy: Platform 16 is in one of the largest technology hubs in the U.S. With easy access to public transportation, as well as local housing, culture, food and entertainment, Platform 16 will help companies attract and retain the talent they need to support their growth.

Read more

 

5: Building our stake in renewable energy

Renewables

When and Where: November 2019; Canada and United States

The Deal: Acquisition of Pattern Energy Group in an all-cash transaction for $26.75 per share, implying an enterprise value of approximately $6.1 billion, including net debt. Expected to close by the second quarter of 2020.

The Players: Pattern Energy is an independent power company with a portfolio of 28 renewable energy projects in North America and Japan that use proven, best-in-class technology. Pattern Energy is a leader in developing renewable energy and transmission assets.

The Upshot: CPP Investments and Riverstone Holdings LLC will combine Pattern Energy and Pattern Development under common ownership following the completion of the proposed acquisition of Pattern Energy by CPP Investments. This merger agreement will bring together the operating assets of Pattern Energy with the world-class development projects and capabilities of Pattern Development.

The Strategy: Pattern Energy is one of the most experienced renewables developers in North America and Japan, with a high quality, diversified portfolio of contracted operating assets, and aligning well with CPP Investments’ renewable energy investment strategy and the increasing global demand for low-carbon energy. With the closing of our recent Pattern Energy deal, renewable energy companies will account for more than 1 percent of CPP Investments’ assets for the first time.

Read more

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From the sale of a European car park to making our mark in Indonesia’s infrastructure space – a look at recent deals that are charting the course for the future

1: Parking It

Infrastructure

When and Where: October 2019; Canada, United Kingdom and the Netherlands

The Deal: We sold our 39% stake in Interparking, a leading car park owner and operator in Europe, to APG of the Netherlands for net proceeds of approximately €590 million (C$870 million).

The Players: APG is the largest pension delivery organization in the Netherlands. Interparking is a leading pan-European car park owner and operator with a portfolio of 949 car park sites in 416 cities across nine countries.

The Upshot: Over the last five years, CPP Investments contributed to the professional development of Interparking, which designs, builds, operates and maintains high-quality car parks across Europe. For APG, their investment in Interparking offers a sustainable long-term business model with strong growth and robust cash generation through its established pan-European platform and its resilient diversified car park portfolio.

The Strategy: Interparking has been an important part of our European infrastructure portfolio for a number of years. Our partnership with our co-investors – AG Real Estate and Parkimo – and the Interparking management team has been very positive, and has contributed to the company’s continued success as a leading owner and operator of high-quality car parks across Europe.

Read more

 

2: Infrastructure team drives home first Indonesian investment

Infrastructure

When and Where: September 2019; Canada, Australia, Hong Kong and Indonesia

The Deal: Our infrastructure team marked its first investment in Indonesia with the acquisition of a 45% interest in PT Lintas Marga Sedaya, the concession holder and operator of one of that country’s longest toll roads, the Cikopo-Palimanan (Cipali). We made the investment with our local partner, PT Baskhara Utama Sedaya (BUS), and jointly acquired a 55% interest in PT Lintas Marga Sedaya from PLUS Expressways International Berhad. BUS was an existing owner of 45% of PT Lintas Marga Sedaya, and increased its stake to 55%. CPP Investments acquired the remaining 45% stake in PT Lintas Marga Sedaya.

The Players: PT Lintas Marga Sedaya is the concession holder and operator of the Cikopo-Palimanan toll road, known to locals as Cipali. BUS is a wholly owned subsidiary of PT Astra Tol Nusantara. PLUS Expressways International Berhad is a subsidiary of the UEM Group.

The Upshot: At 117 kilometres, the Cipali toll road is one of the longest operational toll roads in Indonesia, and a critical link in the transportation network of the island of Java as part of the Trans Java Toll Road network. It serves as a thoroughfare within West Java, which is Java’s most populous and fastest growing province, and it also connects West Java and suburbs of Jakarta with the rest of Java.

The Strategy: As CPP Investments’ first infrastructure investment in Indonesia, this deepens the Fund’s commitment to the Asia-Pacific region as well as our focus on investments in new markets with attractive return and risk characteristics. The Cipali toll road also provides CPP Investments access to a vital infrastructure development supported by rising motorization rates in one of the most densely populated and economically productive regions in Indonesia.

Read more

 

3: Investing in India-based logistics provider

Logistics

When and Where: September 2019; Canada, Hong Kong and India

The Deal: A US$115 million investment in Delhivery Pvt Ltd., broadening exposure to the logistics sector in India. In keeping with CPP Investments’ commitment to portfolio company corporate governance, CPP Investments will have a seat on Delhivery’s Board of Directors.

The Players: Delhivery is one of India’s leading third-party logistics providers, which operates in more than 2,000 cities (with more than 17,500 pincodes), offering a full range of supply chain services. Delhivery is a highly reputable partner that fits well with the CPP Investments’ focus on supporting high-growth businesses.

The Upshot: The investment will help to support Delhivery in their next phase of growth and back Delhivery on their long-term ambition of becoming the operating system for commerce in India.

The Strategy: The continued strong growth of e-commerce has generated significant opportunities in India’s express logistics space for long-term investors. This investment in Delhivery builds on our Fundamental Equities Asia group’s strategy to provide strategic capital to high-quality companies in the region.

Read more

 

4: Joint venture to develop office campus in San Jose

Real Estate

When and Where: October 2019; Canada and United States

The Deal: A joint venture between Boston Properties, Inc. and CPP Investments to develop Platform 16, a 1.1-million-sq.-foot Class A urban office campus in downtown San Jose, California. CPP Investments will have a 45% ownership interest, and Boston Properties will retain the remaining 55% ownership stake and provide customary development, property management and leasing services.

The Players: Boston Properties, Inc. is the largest publicly traded developer and owner of Class A office properties in the United States. Platform 16 is located on a 5.4-acre site and is adjacent to Google’s planned eight-million-square-foot transit village and Diridon Station, the largest multi-modal transportation hub in the Bay Area. This agreement is the second joint venture between Boston Properties and CPPIB, following the Santa Monica Business Park campus in 2018.

The Upshot: This joint venture will support the development of the planned three-building campus. Expect the buildings to feature large floorplates ranging from approximately 25,000 to 90,000 square feet, 15-foot floor-to-floor heights, and 16 large outdoor terraces (that give the project its name), along with multiple indoor and outdoor workspaces and on-site amenities, including a large fitness and wellness facility and conference center. Platform 16 will have immediate access to the adjacent Guadalupe River Park and various retail and restaurant amenities.

The Strategy: Platform 16 is in one of the largest technology hubs in the U.S. With easy access to public transportation, as well as local housing, culture, food and entertainment, Platform 16 will help companies attract and retain the talent they need to support their growth.

Read more

 

5: Building our stake in renewable energy

Renewables

When and Where: November 2019; Canada and United States

The Deal: Acquisition of Pattern Energy Group in an all-cash transaction for $26.75 per share, implying an enterprise value of approximately $6.1 billion, including net debt. Expected to close by the second quarter of 2020.

The Players: Pattern Energy is an independent power company with a portfolio of 28 renewable energy projects in North America and Japan that use proven, best-in-class technology. Pattern Energy is a leader in developing renewable energy and transmission assets.

The Upshot: CPP Investments and Riverstone Holdings LLC will combine Pattern Energy and Pattern Development under common ownership following the completion of the proposed acquisition of Pattern Energy by CPP Investments. This merger agreement will bring together the operating assets of Pattern Energy with the world-class development projects and capabilities of Pattern Development.

The Strategy: Pattern Energy is one of the most experienced renewables developers in North America and Japan, with a high quality, diversified portfolio of contracted operating assets, and aligning well with CPP Investments’ renewable energy investment strategy and the increasing global demand for low-carbon energy. With the closing of our recent Pattern Energy deal, renewable energy companies will account for more than 1 percent of CPP Investments’ assets for the first time.

Read more

homelink Thekey 540x62

 

 

More articles in the series

Mark Machin

Message from Mark: A climate ripe for change and opportunity

Message from Mark: A climate ripe for change and opportunity

- In 2020, you’ll no doubt be hearing a lot about clarity of vision. For us, as we embark on a new decade and navigate the unprecedented length of the current growth cycle, our sense of purpose has never been clearer. - In 2020, you’ll no doubt be hearing a lot about clarity of vision. For us, as we embark on a new decade and navigate t...
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