Greystar Real Estate Partners is joining the Canada Pension Plan Investment Board and Cyrela Brazil Realty in a joint venture that will develop, own and operate purpose-built multifamily rental housing in São Paulo, Brazil.

The platform and partnership, first created by the CPPIB and Cyrela in November 2019, continues to target an investment of up to R$1 billion in combined equity. The CPPIB will maintain a majority interest in the joint venture, while Cyrela will own a significant interest and Greystar will acquire an ownership interest through the expansion of the partnership.

The joint venture has identified four development projects located on premium sites in São Paulo as assets to seed, with three already secured. This provides the partnership with immediate scale in the market and accounts for about 40 per cent of the joint venture’s target equity allocation, according to a release.

“CPP Investments sees increasing demand in the rental multifamily sector in Brazil, which will particularly benefit developers of modern, high-quality residential space,” said Hilary Spann, the CPPIB’s managing director and head of real estate for the Americas, in the release. “We are pleased to join our partners Cyrela and Greystar in building a best-in-class portfolio in Brazil.”