Canada Pension Plan Investment Board (CPPIB) has announced that its wholly-owned subsidiary, CPP Investment Board European Holdings S.à r.l (CPPIBEH),  has signed an agreement to invest approximately €376 million for a 39% stake in Interparking, one of Europe's largest car park management companies.

CPPIBEH will acquire the stake from AG Real Estate (AGRE), taking AGRE's holdings to 51%. PARKIMO, an existing shareholder, will maintain its 10% holding in the company.

Based in Brussels, with operations across nine countries in Europe, Interparking has a portfolio consisting of 657 car parks in 350 cities, with leading market shares in Belgium and Germany.

André Bourbonnais, Senior Vice-President, Head of Private Investments, CPPIB, stated:

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. 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.

Antonio Cano, Chief Executive Officer of AG Insurance and Chairman of the Board of AG Real Estate, commented:

We are delighted to have CPPIB on board as our partner and long-term investor in Interparking. By joining forces, we will be providing the company, its management and its staff with renewed impetus for growth.

The transaction is subject to customary closing conditions and regulatory approvals from the competition authorities.