CPP Investment Board Invests US$125 million In US$770 Million Acquisition With Callahan Capital Partners

TORONTO, ON (September 26, 2007) CPP Investment Board, the investment management organization that invests Canada’s national pension fund assets, announced today that it has committed US$125 million to acquire a 39 per cent interest in a joint venture sponsored by Callahan Capital Partners (CCP), a U.S.-based real estate private equity firm.

The joint venture owns five class A office properties totaling 2.8 million square feet and a development parcel in downtown Denver, Colorado which were acquired in March 2007 for US$770 million.

“This investment increases our exposure to top tier U.S. office properties and supports our efforts to diversify the CPP Investment Board’s real estate portfolio in North America and globally,” said Graeme Eadie, Senior Vice-President, Real Estate Investments, CPP Investment Board. “The CCP management team’s long and impressive track record at operating and creating value in large office portfolios fits well with the CPP Investment Board’s long-term investment strategy.”

“We are delighted to include the CPP Investment Board, one of the most respected and sophisticated institutional investors, as a partner in our Denver venture. CPP Investment Board’s long-term investment horizon fits well with our approach to real estate investments,” said Tim Callahan, Callahan Capital Partners’ Chief Executive Officer.

About the CPP Investment Board
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 16 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board is investing in publicly-traded stocks, private equities, real estate, inflation-linked bonds, infrastructure and fixed income. The CPP Investment Board is accountable to Parliament and the federal and provincial finance ministers. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2007, the CPP Fund totaled C$120.5 billion including $5.6 billion in real estate investments. For more information, please visit www.cppib.ca.

About Callahan Capital Partners
Callahan Capital Partners is a real estate private equity firm focused on creating value in real estate through prudent investment in high-quality office properties throughout the United States and leveraging substantial experience and expertise across the real estate spectrum – from investment, to asset management, to property management.

For further information contact:
Joel Kranc
Manager, Communications
CPP Investment Board
(416) 874-5163 
jkranc@cppib.ca