The Canada Pension Plan Investment Board is allocating $175 million to aquire a 20 per cent stake in a partnership intending to invest in logistics and industrial assets in São Paulo and Rio de Janeiro.
Totalling $880 million, the newly formed Goodman Brazil Logistics Partnership includes investments from global investment manager APG Asset Management, Australian superannuation fund First State Super and Singapore-based sovereign fund GIC Private Ltd.
“CPPIB expects the industrial sector to particularly benefit from an improvement in Brazil’s domestic consumption, supporting long-term demand for modern, efficient logistics space,” said Hilary Spann, managing director and head of Americas, real estate investments at the CPPIB, in a press release.
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“Together with Goodman, a long-standing global real estate partner, and other like-minded investors, the partnership will work to deliver over one million square metres of high-quality logistics space, a supply-constrained segment in Brazil.”
In its initial foray, the partnership is taking on four warehouse logistics facilities, as well as two land sites. Further along, the partnership intends to purchase additional existing assets and new development opportunities.
“Since 2006, when we made our first investment in Latin America, this region has been a key focus market for CPPIB,” said Rodolfo Spielmann, managing director and head of Latin America at the CPPIB, in the release.
“The strong fundamentals and growth prospects in Brazil and Latin America are attractive to CPPIB and we are committed to increasing our exposure over the long term. CPPIB is well-positioned as a valuable investment partner in the region given our long-term focus and our team of experienced investment professionals based in São Paulo.”
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In other investment news, the Public Sector Pension Investment Board, along with investment firm EQT, is in discussion to acquire Azelis, a global distributor of specialty chemicals and food ingredients.
“Strong relationships with leading private equity firms are at the core of our investment strategy, and we are excited to partner with EQT for the acquisition of Azelis,” said Simon Marc, managing director and head of private equity at PSP Investments, in a press release.
“Azelis is a global leader in an attractive market that has strong consolidation prospects. We are very pleased to back Azelis and its world-class management team in their next stage of growth.”
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