CPP investing in Brazilian real estate venture

The Canada Pension Plan Investment Board (CPPIB) is forming a venture with Banco BTG Pactual S.A. (BTG) to invest in residential development opportunities in Brazil.

CPPIB has committed an equity investment of US$240 million for a 40% interest in the venture and BTG will match it. BTG will be the investment advisor and manage the day-to-day affairs of the venture, while CPPIB will have a seat on the investment committee which approves all investments made by the venture.

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“The fundamentals of Brazil’s residential development sector are compelling as a growing middle class, increased economic activity, and favourable demographic shifts drive increased demand for new housing,” said Peter Ballon, vice-president and head of real estate investments – Americas, CPPIB.

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CPPIB’s real estate portfolio in Brazil is valued at C$1.5 billion as of Sept. 30. The portfolio includes retail, office and logistics properties totalling more than 4.1 million square metres (44 million square feet), including development assets.

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