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.
“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,” says Peter Ballon, vice-president and head of real estate investments for the Americas, CPPIB.
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 amounting to more than 44 million square feet, including development assets.
This story originally appeared on our sister publication, Advisor.ca.