CPPIB Invests in Parking Garages in Belgium and Germany

car cppib

The Canada Pension Plan Investment Board (CPPIB), through CPP Investment Board European Holdings S.àr.l, has signed an agreement to invest approximately €376 million for a 39% stake in Interparking Group S.A./NV. This deal was announced on July 18, 2014. Brussels-based Interparking is one of Europe’s biggest car parking management companies. Founded in 1958, Interparking has a massive portfolio of 657 car parks spread among 350 cities. However, most of the property assets are in Belgium and Germany. Increasingly, long-term public investors are making bids on real assets that offer stable cash flows.

The CPPIB is buying the stake from AG Real Estate, part of AG Insurance. AG Real Estate is the largest real estate group in Belgium with a diversified portfolio approaching a valuation of €6 billion. The future ownership model for Interparking is: AG Real Estate at 51%, CPPIB at 39% and PARKIMO at 10% ownership.

“We are pleased to make our first investment in the European car parking sector through this excellent opportunity to invest in a first-class car park platform alongside AG Real Estate and PARKIMO,” said André Bourbonnais, Senior Vice-President, Head of Private Investments, CPPIB in a press release. “Interparking is a good fit with our infrastructure program because of the relatively stable, predictable cash flows available through its geographically diversified portfolio of high quality car parks, and this aligns well with CPPIB’s exceptional long-term investment horizon.”

Morgan Stanley was the financial advisor for AG Real Estate. Linklaters LLP was the legal advisor for AG Real Estate. Citigroup was the financial advisor for the CPPIB.

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