The Canada Pension Plan Investment Board has sold a partial interest in a German retail joint-venture to its partner.

Unibail-Rodamco-Westfield (URW) has acquired a 38.9% stake in URW Germany GmbH (URWG.) The transaction, conducted off-market under the framework of an existing shareholders’ agreement, increases URW’s ownership in URWG to 89.9%.

The deal involves the issuance of 3.254 million new URW stapled shares, equivalent to approximately 2.2% of URW’s fully diluted share capital. These shares will be transferred to CPPIB in exchange for the 38.9% interest in URWG. Both parties retain an option to transfer CPPIB’s remaining 10.1% stake to URW in 2025 for a cash consideration of up to €65 million.

URWG’s portfolio includes five retail assets across Germany: Minto, located in Moenchengladbach; Höfe am Brühl (Leipzig), Palais Vest (Recklinghausen); a 50% share in Paunsdorf Center (Leipzig), and a 20% share in Gropius Passagen (Berlin.) In addition, URWG holds €416 million in cash, bolstered by €238 million in net proceeds from the recent sale of Pasing Arcaden in Munich.

“This acquisition strengthens our position in Germany and reinforces our strategy to focus on high-quality assets in dynamic urban markets,” URW stated.

Toronto-based CPPIB remains a partner with URW on other key projects, including Westfield Stratford City in London, Westfield Centro in Germany, and various assets in the U.S.

Paris-based URW is a leading developer and operator of sustainable, high-quality real estate assets, including 71 shopping centres across 12 countries. Its €50-billion portfolio spans retail, offices, convention centres, and mixed-use developments.

CPPIB ranks among Canada’s largest institutional investors. It invests the funds of more than 21 million Canada Pension Plan contributors and beneficiaries.

Pictured: Minto mall in Moenchengladbach, Germany

Photo: CNW Group/CPPIB