National Pension Service's First Overseas Office Development Investment Fully Leased Before Completion

CIBC Square Offices in Canada Achieve 100% Occupancy Rate

The National Pension Service has achieved full leasing before completion for the first time in its overseas real estate investment history in an office development project.

On the 12th, the National Pension Service announced that the two CIBC Square office towers in Toronto, Canada, in which it invested in 2016, reached a 100% occupancy rate four months before completion.

The National Pension Service invested in the two CIBC Square office towers in 2016 and 2018, respectively. The total project cost is approximately 2.5 trillion won. The fund explained that, despite challenges such as the increase in working from home due to the spread of COVID-19 in 2020, and interest rate hikes and rising raw material prices since the end of 2022, the project has progressed smoothly.

Of the two CIBC Square office towers, most of the principal invested in Tower 1 was recovered through refinancing after its completion in 2021. Tower 2 is scheduled for completion this June, but has already achieved a 100% occupancy rate ahead of time.

Seo Wonju, Chief Investment Officer of the National Pension Service, said, "This case is the result of the fund predicting demand growth and making a preemptive investment in the Canadian market, which was a new investment region at the time, through years of bottom-up analysis," adding, "We will continue to strengthen our global network and identify promising investment opportunities."

Since the CIBC Square investment, the National Pension Service has successively carried out overseas office development projects such as One Vanderbilt and One Madison Avenue in Manhattan, New York. Last year, it completed Magok One Grove, the largest office development project in Korea.

Chairman Kim Sungjoo said, "We will continue to secure investment opportunities in high-quality overseas assets in a timely manner and enhance our investment performance."