CPP Investments Forms JV With IRA Capital to Invest in Medical Outpatient Buildings
The Canada Pension Plan Investment Board has signed a deal to form a joint venture with California-based private equity firm IRA Capital to invest in medical outpatient buildings.
CPP Investments has allocated an initial US$143 million of equity capital to the joint venture.
It will hold a 47.5 per cent stake.
The partners have agreed to acquire an initial portfolio of 24 properties across 11 U.S. states to start.
Sophie van Oosterom, managing director and head of real estate at CPP Investments, says the venture will target modern outpatient care facilities in growing U.S. communities.
Founded in 2010, IRA Capital specializes in real estate investments with a focus on commercial real estate assets in the U.S.
Last week, CPP investments issued a statement on this deal:
CPP Investments allocates initial US$143 million of equity capital to the joint venture.
Toronto, ON (January 22, 2026) – Canada Pension Plan Investment Board (CPP Investments) today announced its participation in a joint venture with IRA Capital and a global institutional investor (the “Joint Venture”) to invest in medical outpatient buildings. CPP Investments will hold a 47.5% stake in the Joint Venture.
CPP Investments has allocated US$143 million of equity capital to the Joint Venture, which will have an expected acquisition capacity of approximately US$850 million.
“The program will target modern outpatient care facilities in growing U.S. communities, where demand is supported by demographic trends and the shift of services from hospitals to outpatient settings,” said Sophie van Oosterom, Managing Director, Head of Real Estate at CPP Investments. “We are pleased to establish this program with IRA Capital to invest in high-quality medical facilities across resilient markets, where effective management of the assets can enhance tenant experience and retention. This investment will help deliver long-term, risk-adjusted returns to the CPP Fund for the benefit of CPP contributors and beneficiaries.”
As part of this Joint Venture, the partners have agreed to acquire an initial 1.5 million square-foot medical facility portfolio across 24 properties. The assets include on-campus and advanced outpatient care facilities that support physicians and health-system partners.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2025, the Fund totaled C$777.5 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
I didn't know much about IRA Capital before reading about this joint venture but they're obviously legit and specialize in this sector:
IRA Capital “IRA” is a leading private equity firm focused on alternative investments. Founded in 2010, IRA invests capital for its own account and on behalf of its co-investment partners, which include pension funds, institutions, and family offices. The firm primarily invests in commercial real estate assets throughout the United States, with an overweight concentration within the medical/healthcare real estate sector. IRA has established itself as a leader within its respective industries and markets, with deep relationships and a strong track record of profitability.
As to why CPP Investments is teaming up with IRA to invest in medical outpatient buildings, I think this outlook analysis by PWC titled In Times of Uncertainty, Health Care Real Estate Offers Stability is instructive. I note the key points below
Health care real estate is positioned to outperform in 2026, supported by demographic tailwinds, sustained outpatient demand, and its role as a core defensive asset.
Tight market conditions and limited new construction will continue into next year, maintaining upward pressure on rents and reinforcing stable fundamentals.
Investor activity is expected to strengthen in 2026 as capital markets ease and confidence builds around the sector’s long-term growth trajectory.
In times of market uncertainty, investor focus tends to shift to sectors that are anticyclical and can weather a storm. The inelastic demand for health care services and the real estate that supports it becomes even more attractive. Despite an overall softening of the labor market, health care continues to be one of the strongest sectors tracked by the Bureau of Labor Statistics: health care employment growth annually was 2.8 percent as of August 2025 (down from approximately 4 percent levels in 2024) while total nonfarm growth has slowed to 0.9 percent as of August (from levels of 1.3 percent in 2024).
Demand for health care services continues to grow as the population ages, new discoveries and medical advances increase the amount of medical issues that can be addressed, and the focal shift from reactive medical care to preventative care and wellness continues. The real estate that supports the health care system is largely made up of hospitals and inpatient care and medical office buildings or medical outpatient buildings (collectively, MOBs). There are 7,273 hospitals in the United States making up 1.9 billion square feet and 42,260 MOBs representing 1.6 billion square feet. MOBs can include any number of tenant types and services including urgent care and emergency services, dialysis, ambulatory surgery, and imaging, as well as standard physician offices.
The MOB sector has continued to see an increase in demand. With advancements in health care technology, many services are now able to be performed in an outpatient setting rather than inpatient, freeing up space in the hospital for more advanced and complicated cases. In recent years, many of these MOB locations have been moving off-hospital campus and out into the community to make them more accessible for patients. This helps providers and hospital systems build market share and more effectively serve a wide range of patients and cases.
Worth repeating this: "With advancements in health care technology, many services are now able to be performed in an outpatient setting rather than inpatient, freeing up space in the hospital for more advanced and complicated cases."
I'm sure CPP Investments and IRA Capital did their homework here and are targeting the right metropolitan areas to invest in and I suspect this will be one of many joint ventures in this area.
Another smart investment over the long run.
Alright, let me wrap it up and go watch "The PITT" with my wife (we are hooked).
Below, in this episode of Multiple Perspectives, host David Lofgren interviews Trisha Talbot, Managing Principal of Doc Properties, to explore the intricacies of medical office building investments, tenant dynamics, and how demographic shifts are reshaping healthcare real estate opportunities.
Also, in this episode of The Smart Property Investment Show, co-hosts Liam Garman and Emilie Lauer sit down with Matthew Strotton, the head of real estate at Real Asset Management (RAM) in Australia, to discuss how investors can diversify their portfolios through healthcare real estate.
Lastly, if you've never seen The PITT, it's awesome, intense, fast paced and just awesome!
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