CPPIB joins Asian sovereign giants for Brazilian real estate projects


The $170bn Canada Pension Plan Investment Board has teamed up with a pair of Asian sovereign wealth giants to expand their real estate exposure in Brazil.

CCPIB plans to hand over $343m to two joint ventures with plans to acquire five development projects and 35 real estate logistics assets.

The first, Development Joint Venture, will see the fund partner with Singaporean warehouse operator Global Logistic Properties and Singapore sovereign investor GIC, while Stabilized Joint Venture also includes the $482bn China Investment Corporation.

GLP will manage the assets using its existing 400-person team on the ground. Both transactions are expected to close in December.

CPPIB will hold a 39.6 per cent interest in DJV, with GLP and GIC both owning $41.3 per cent.

The pension fund will own an 11.6 per cent stake in SJV, with GLP and CIC each owning 34.2 per cent and GIC controlling a 20 per cent interest.

CPPIB’s head of real estate for the Americas, Peter Ballon, said, “This investment will significantly expand our logistics portfolio in Brazil and represents a rare opportunity to invest in a sizeable portfolio of high quality development and stabilized logistics assets.

“Our real estate portfolio in Brazil now includes interests in 56 retail, office and logistics properties including assets currently under development which, when completed, will total more than 35 million sq ft of leasable area.

“We look forward to partnering once again alongside GLP, a well-aligned partner and one of the largest global logistics owners and developers in the world.”

Most of the DJV sites are located in São Paulo state, the most economically important region of the country, near major industrial and logistic hubs with direct access to key transportation nodes.

SJV consists of 34 fully-leased assets primarily located in the economically-dominant South East region of Brazil, as well as a single strategically-located development site.

The deals follow CPPIB wrapping up a busy second quarter in which it boosted its net assets by $4.3bn and returned 1.9 per cent, in addition to signing a number of large private equity co-investment deals.

The CPP Fund ended the second quarter of its 2013 fiscal year on September 30, 2012 with net assets of $170.1bn, compared to $165.8bn at the end of the previous quarter.

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