The CPP Investment Board (CPPIB) has just signed a deal to buy a 27.6% interest in one of Brazil’s major shopping centre companies for US$480 million (C$492.5 million).
The transaction is expected to close this fall.
The company—Aliansce Shopping Centers S.A.—owns, manages and develops enclosed shopping centres throughout Brazil. Based in Rio de Janeiro, Aliansce has a portfolio of 17 stabilized assets and two development projects.
“Acquiring an interest in Aliansce allows us to gain scale in a key target segment with a diversified portfolio of high-quality, modern shopping centres located throughout Brazil, including the economically dominant southeast and fast-growing northeast regions,” says Peter Ballon, vice-president and head of real estate investments for the CPPIB in the Americas.
Before agreeing to buy an interest in Aliansce from General Growth Properties, the CPPIB’s real estate portfolio in Brazil amounted to more than C$900 million. That portfolio includes interests in retail, office and logistics properties, with a total area of more than 35 million square feet, including development assets.
“This transaction represents a significant expansion of the CPPIB’s real estate portfolio in Brazil, which remains a strategic market for us over the long term,” Ballon explains. “We will continue to seek attractive investment opportunities across the retail, logistics and office sectors through partnerships with top-tier local partners.”
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