The Canada Pension Plan Investment Board is creating a new joint venture alongside Cyrela Brazil Realty to explore opportunities in the Brazilian real estate market.
The two partners have established an investment target of $400 million, primarily to develop residential condominiums in São Paulo. In a press release, Ricardo Szlejf, managing director and head of real assets for Latin America at the CPPIB, said the investment organization envisions the partnership delivering strong, risk-adjusted returns to contributors and beneficiaries.
“The residential market in São Paulo has strong fundamentals, supported by favourable demographics, low unemployment level and resilient household income growth in the city.”
The CPPIB is also selling its stake in U.S. energy producer Calpine Corp. to Constellation Energy Corp., in a deal worth roughly US$700 million in cash and $1.9 billion in shares of the acquiring firm.
“We are pleased by the success of our investment in Calpine and view this transaction as an excellent opportunity to realize strong returns for the CPP Fund,” said Bill Rogers, managing director and head of sustainable energies at the CPPIB.
The CPPIB is also selling its ownership stake in a North American partnership with Goodman Australia, a global industrial property and digital infrastructure firm. The financial details of the transaction weren’t disclosed but the CPPIB said it has realized C$2.2 billion in net proceeds over the life of the investment.
“The proceeds from this transaction also give us the ability to redeploy capital towards new investment opportunities as our portfolio continues to grow and evolve alongside the global market,” said Max Biagosch, global head of real assets and head of Europe at the CPPIB, in a press release.
Read: CPPIB selling China real estate portfolio for $235 million, investing in global software provider
In other news, the global real estate arm of the Caisse de dépôt et placement du Québec is selling a 49 per cent stake in the 1211 Avenue of the Americas office building in New York City.
The ownership stake was sold to real estate investor RXR Realty LLC. According to a press release, Ivanhoé Cambridge and RXR will invest more than $300 million in modernization efforts for the building.
“Through this partnership, we intend to leverage RXR’s expertise in the New York real estate market and invest in the transformation of one of the city’s most recognizable buildings,” said Rana Ghorayeb, senior vice-president and head of real estate at the Caisse.
The Public Sector Pension Investment Board is buying a 19.9 per cent interest in two midwestern American Electric Power’s transmission companies for $2.82 billion.
The acquisition is being completed alongside KKR & Co. Inc. and will cover electricity services in Ohio, Indiana and Michigan. In a press release, Michael Rosenfeld, managing director of infrastructure investments at the PSP Investments, said the deal marks a milestone in the investment organization’s high inflation-correlated infrastructure strategy.
“We are delighted to form this partnership with AEP to support its ambitious growth plan to build much needed transmission infrastructure in a region that is undergoing significant tailwinds from digitalization and re-shoring of critical manufacturing.”
Read: PSP Investments investing in accounting firm, Caisse-backed fintech asset becoming private company