The Canada Pension Plan Investment Board is investing in office properties in Brazil through a deal that includes a new $500-million joint venture.
On Wednesday, the CPPIB announced it had acquired a 33 per cent stake in the office portfolio of Cyrela Commercial Properties. In turn, Cyrela has acquired the CPPIB’s 50 per cent equity stake in their existing logistics joint venture, CCP Logistica Empreendimentos Imobiliarios. In addition, the two organizations have jointly committed about $500 million to a newly formed joint venture that will focus on additional investments in office properties in Brazil.
Cyrela’s office portfolio includes 12 Class A properties totalling 90,500 square metres of leasable space predominantly located in Sao Paulo.
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“This transaction represents a compelling opportunity to gain exposure to the Brazilian office sector, further diversifying our portfolio,” said Hilary Spann, managing director and head of Americas for real estate investments at the CPPIB.
“We are able to build immediate scale through this investment in one of Brazil’s most resilient office portfolios, strategically located in a prime office market in Sao Paulo.”
The news follows an announcement earlier this week that the CPPIB is part of a $32-million investment to acquire land in Pune, one of India’s largest cities, for retail real estate development.
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