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The Canada Pension Plan Investment Board (CPPIB) is expanding its real estate portfolio in Brazil with additional equity commitments to logistics and retail assets totalling about $445 million.
“Since making our first real estate investment in Brazil in 2009, CPPIB has become one of the largest investors in the sector with ownership interests in logistics, retail, office, and residential assets or developments,” says Peter Ballon, managing director and head of real estate investments – Americas.
The CPPIB has done the following:
- formed a joint venture with Global Logistic Properties (GLP) to invest in a high-quality portfolio of logistics properties that GLP previously acquired from BR Properties; CPPIB is investing $226 million in equity for a 30% ownership stake in the joint venture;
- committed an additional $103 million of equity to GLP Brazil Development Partners I, an existing joint venture that is owned 40% by GLP, 39.6% by CPPIB and 20.4% by the Government of Singapore Investment Corp.;
- committed $71 million of equity to acquire a 25% interest in a new logistics development project located near Sao Paulo alongside Cyrela Commercial Properties; and
- acquired a 33.3% interest in Santana Parque, a regional shopping centre in Sao Paolo, for $45 million.
The CPPIB’s commitments to real estate investments in Brazil now total more than $2 billion.
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