After closing a portfolio exchange, Canada Pension Plan Investment Board and Cyrela Commercial Properties have committed US$400m to a newly formed joint venture that will focus on additional investments in top-tier office properties in Brazil.

(Press Release) Canada Pension Plan Investment Board and Cyrela Commercial Properties S.A. Announce Closing of Portfolio Exchange in Brazil

CPPIB and CCP Commit US$400 Million to New Brazilian Office Joint Venture

Key Highlights:

• Canada Pension Plan Investment Board and Cyrela Commercial Properties S.A. announce the closing of a portfolio exchange transaction under which CPPIB has acquired a 33% interest in CCP’s Brazil-based office portfolio and CCP has acquired CPPIB’s 50% equity stake in their existing logistics joint venture.
• CPPIB and CCP commit up to US$400 million to a new joint venture to focus on further investments in top-tier office properties in Brazil.
• The CCP office portfolio is one of Brazil’s largest, with 12 Class-A properties located primarily in Faria Lima, São Paulo’s prime office district.

Further, CPPIB and CCP have jointly committed US$400 million to a newly formed joint venture that will focus on additional investments in top-tier office properties in Brazil.

The CCP office portfolio is among the largest in Brazil comprising 12 Class-A properties totalling 90,500 square metres (approximately 975,000 square feet) of leasable space. Predominantly located in São Paulo’s prime Faria Lima office district, the high-quality office properties are more than 90% leased, and anchored by a broad mix of strong tenants in financial and legal services.

“This transaction represents a compelling opportunity to gain exposure to the Brazilian office sector, further diversifying our portfolio,” said Hilary Spann, Managing Director, Head of Americas, Real Estate Investments, CPPIB. “We are able to build immediate scale through this investment in one of Brazil’s most resilient office portfolios, strategically located in a prime office market in São Paulo. We look forward to working alongside CCP, a longstanding partner, as we seek more acquisitions in this sector.”

CCP’s office portfolio has historically outperformed the overall Class-A Brazilian office market, maintaining high occupancy levels particularly in properties located within the supply-constrained Faria Lima market. CCP will continue to manage and operate the properties.

“We see this as an important step to further expand our partnership with CPPIB, a well-aligned and well-capitalized partner,” said Pedro Daltro, CEO of CCP. “Our new joint venture will enable us to build an even bigger footprint in the Brazilian office market, complementing our existing office portfolio that has proven to be resilient throughout market cycles with a highly attractive tenant base.”