The CPPIB and Ivanhoé Cambridge—a real estate subsidiary of the Caisse de dépôt et placement du Québec—have acquired a 49% interest in a Brazilian shopping centre.
The total transaction value is R$136 million or C$80 million. Ivanhoé Cambridge and the CPPIB each made an equity investment of R$68 million or C$40 million.
With this transaction, Ivanhoé Cambridge and its Brazilian affiliate, Ancar Ivanhoe Shopping Centers, have increased their existing joint ownership percentage from 51% to 75.5%. The CPPIB now owns a 24.5% interest in the shopping centre.
Located along Botafogo Beach in Rio de Janeiro, Botafogo Praia Shopping is 15,500 square metres, spread out over eight floors.
“This is our first joint acquisition with the CPP Investment Board, and we are confident it will be a great success,” said Claude Sirois, senior vice-president, emerging markets, with Ivanhoé Cambridge.
“We are very pleased to be acquiring an interest in one of Brazil’s top shopping destinations,” said Peter Ballon, head of real estate investments, Americas, with the CPPIB. “This asset nicely complements our existing Brazilian portfolio, which now includes three retail properties, two office developments and eight industrial projects.”
Ancar Ivanhoe, which will continue to manage Botafogo Praia Shopping, is one of the largest shopping centre companies in Brazil with almost seven million square feet of space under management.
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