CPPIB co-invests in Brazil shopping mall

The Canada Pension Plan Investment Board (CPPIB) has entered into a co-investment agreement with Brazil-based Aliansce Shopping Centers to acquire an additional 7.87% ownership in a shopping mall in Salvador, Brazil.

The investment, which was made in December, brings Aliansce and CPPIB’s combined total stake in the Shopping Iguatemi Salvador mall to 67.2%. The total acquisition price is $81.4 million Brazilian real, or close to C$47 million.

The mall is formed by the Naciguat and Riguat condominiums. Aliansce will acquire 8.97% of Naciguat, representing 4,908 square metres, while CPPIB will acquire 13.46% of Naciguat and 18.10% of Riguat, representing a total of 8,744 square metres.

The acquisition terms for both CPPIB and Aliansce are the same; Aliansce will receive management and leasing fees from the percentage acquired by CPPIB.