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TORONTO - The Public Sector Pension Investment Board is buying the airports division of German construction company Hochtief AG for 1.4 billion euros.
PSP Investments spokesman Mark Boutet says the fund is looking more to private assets like infrastructure and real estate in a bid to diversify its portfolio.
The deal, which is retroactive to Jan. 1, is expected to close in the second half of the year.
The pension plan manager is buying interests in six airports located in Athens, Budapest, Dusseldorf, Hamburg, Sydney and Tirana. Combined, they handle roughly 95 million passengers each year.
In a statement, Hochtief says it will use the money to reduce its debt and invest in the operating infrastructure business.
PSP Investments manages the investments for the pension plans of the federal public service, the Canadian Forces and the RCMP.
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