The global head of real estate at Canada's largest pension fund is stepping down this summer, just the latest departure in the sector that has had significant leadership changes over the past 12 months.
The Canada Pension Plan Investment Board, with about $435 billion (CA$ $590 billion) in assets and administers and manages the investments of CPP's more than 22 million contributors and beneficiaries, confirmed to CoStar News that Peter Ballon would step down in July. No reason was given for his departure.
Ballon, who leads a global portfolio that includes approximately $37 billion (CA$50 billion), in real estate assets, has been with CPPIB since 2007. Ballon is also a former global chair of the Urban Land Institute.
In February, CPPIB reported a 3.4% return for the quarter that ended Dec. 31. Over the past decade, the fund has had a 9.3% annualized return.
CPP Investments, which invests Canada Pension Plan funds, has interests in commercial property across the globe. It has formed joint ventures to with United States apartment giant Greystar to invest in rental housing and life science developments in the States.
Canada's largest pension fund does not break out its real estate numbers, but other Canadian pension funds have reported negative returns for their real estate investments in 2023. Management shuffles have continued at the real estate divisions of some of Canada's largest pension funds.
Leadership Changes
Nathalie Palladitcheff, chief executive of Ivanhoé Cambridge, the real estate arm of Caisse de dépôt et placement du Québec, will leave the company next month amid a reorganization that will see the parent company take over direct management of its real estate portfolio. CDPQ reported a negative 6.2% return on its real estate investments in 2023.
CDPQ announced this week that it has appointed Rana Ghorayeb as executive vice president and head of real estate for its real estate portfolio. Ivanhoé Cambridge's portfolio and investment team, which has assets of over CA$77 billion, will become an investment group within CDPQ on April 29.
The Ontario Teachers' Pension Plan Board reported a similar reorganization for its real estate arm, Cadillac Fairview, in June 2023, saying it was establishing an in-house real estate asset class group to oversee real estate investment activities.
Ontario Teachers reported its real estate returns were down 5.9% last year. The Healthcare of Ontario Pension Plan reported that real estate returns dropped 6.5% last year even as overall returns climbed 9.38%.
Also in 2023, the Ontario Municipal Employees' Retirement System brought in Daniel Fournier, a former chairman and CEO of Ivanhoé Cambridge, as the executive chair of its real estate arm, Oxford Properties.
OMERS delivered a 4.6% return in 2023, but like other pension funds, its real estate holdings lagged with a negative 7.2% return last year.