Canada Pension Fund Targets Brazil

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The Canada Pension Plan Investment Board is forming a partnership with Banco BTG Pactual S.A. to invest in Brazil residential development. 

CPPIB has committed US$240 million for a 40 percent interest in the venture, with BTG matching the investment, according to an announcement. 

"This opportunity provides us with an attractive entry point to the Brazilian residential market as we continue to expand our real estate portfolio in Brazil," Peter Ballon, vice-president and head of real estate investments ‒ Americas, CPPIB, said in the announcement. 

"The fundamentals of Brazil's residential development sector are compelling as a growing middle class, increased economic activity, and favorable demographic shifts drive increased demand for new housing."

BTG will manage day-to-day business for the venture, while CPPIB will have a seat on the investment committee. 

CPPIB's real estate portfolio in Brazil was valued at C$1.5 billion ($1.44 billion) at the end of September 2013, according to the fund's website. The portfolio includes retail, office and logistics properties totaling more than 4.1 million square meters. 

Earlier this month, CPPIB joined UK-based mall owner Intu Properties to purchase Parque Principado Shopping Centre in Spain for €162 million ($219.7 million)