A subsidiary of the Canada Pension Plan Investment Board (CPPIB) and Cairn Capital have committed to purchase a €180 million bond backed by European real estate assets owned by Globalworth Real Estate Investments.
The bond is secured by prime real estate assets in Bucharest, Romania and is a single tranche transaction, listed on the Channel Islands Stock Exchange. CPPIB Credit Investments will acquire €150 million of the bond, while Cairn Capital will purchase the remaining €30 million and manage all funds.
Ioannis Papalekas, founder and chief executive officer of Globalworth, said in prepared remarks that securing an international real estate investor will strengthen the company’s standing in the Romanian real estate market. “We have built a portfolio of properties that we are proud of and will continue to be an active investor where we see value,” he added, “thus cementing our position as one of the leading real estate investors in the region.”
Cairn Capital privately arranged the bond on behalf of Globalworth.
The CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments with funds from the Canada Pension Plan, which totaled C$278.9 billion as of March 31, 2016. Cairn Capital is a London-based credit asset management, advisory and securities restructuring firm. Globalworth Real Estate Investments Limited is a real estate investment company founded by investor and developer Ioannis Papalekas, currently focused on investment opportunities in Romania.