The Canada Pension Plan Investment Board (CPPIB) have released a statement on their plans to invest 1 billion Brazillian Reais in commercial property in Brazil. The statement comes just a few months after the Toronto-based pension fund opened an office in São Paulo.
As one of the world’s biggest pension funds, CPPIB has more than $212 billion worth of assets under its belt, primarily focusing on investments opportunities in Brazil, Chile, Columbia, Mexico and Peru.
The investments include the purchase of warehouses, land and stakes in development projects in the logistics and retailing industries, adding to the fund’s portfolio of more than 100 properties in Latin America’s largest economy worth over $1.8 billion.
CPPIB will pay R$ 507 million for 30% in a joint venture with Singapore’s Global Logistic Properties Ltd and another R$ 231 million committed to GLP Brazil Development Partners I, a real estate investment vehicle in which Global Logistic Properties has a 40% stake and CPPIB a 39.6% stake.
The company also pledged to spend R$ 159 million to buy a 25% stake in a São Paulo logistics project alongside Cyrela Commercial Properties SA.
“Brazil remains a key market for CPPIB over the long term and we will continue to seek attractive investment opportunities through our existing partnerships with top-tier local partners while we continue to build our local presence in Sao Paulo,” Peter Ballon, head of CPPIB’s real estate investment in the Americas, said in the statement.
In total CPPIB has committed $5.6 billion to investments in Latin America.