The Caisse de dépôt et placement du Quebec’s real estate investment arm, together with Prologis Inc., is launching a joint real estate venture in Brazil.
The Prologis Brazil logistics venture will aim to develop and operate Brazilian logistics spaces in São Paulo and Rio de Janeiro, acquiring an initial portfolio of 641,030 square metres of operating properties along with more than 150 hectares of land from Prologis’ balance sheet with a commitment to further develop the land.
Read: With a new leader, is Brazil open for business or more volatile?
“We are very excited to continue building our highly successful Brazil business with Ivanhoé Cambridge, a new strategic partner that brings extensive experience in Brazil specifically and in global real estate generally,” said Gene Reilly, chief executive officer of the Americas at Prologis, in a press release. “With this venture, we are increasingly well-positioned to meet the growing demand for modern logistics space, as more than 40 per cent of the country’s gross domestic product is located in São Paulo and Rio de Janeiro.”
Ivanhoé Cambridge is taking the lead in the partnership with an 80 per cent stake. Rita-Rose Gagné, the organization’s president of growth markets, said the investment is part of a long-standing history of investing in the region.
“We have been investing in Brazil since 2006 and continue to do so with a long-term view. The quality of our partners and assets are key. We are delighted to partner with Prologis, the leading global logistics company, to invest in the growing logistics sector of Brazil. This venture aligns with our global approach to significantly increase our investments in the industrial and logistics space in key markets around the world.”
Read: CPPIB invests in Brazilian hydro company in joint venture