The CPP Investment Board said Monday that it will invest up to $250-million (U.S.) in a joint venture that will focus on the development, acquisition and management of institutional-quality commercial properties in Brazil.
The fund manager said it will invest an initial $150-million that may be increased up to $250-million in the venture with Cyrela Commercial Properties SA Empreendimentos e Participacoes that will also include GIC Real Estate, the real estate investment arm of the GTBovernment of Singapore Investment Corp.
CPPIB said the venture's principal strategy will be to develop and manage high-quality office buildings, shopping centres and distribution facilities in Brazil.
"The venture will also explore the acquisition of high quality existing properties on a highly selective basis," CPPIB said.
At March 31, the CPPIB real estate portfolio totalled $6.9-billion.
The CPP Investment Board invests the money not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million contributors and beneficiaries.