Canada Pension Plan Investment Board (CPP Investments) and Abu Dhabi Investment Authority (ADIA) are backing a BRL5.2bn (€845m) Brazilian logistics fund managed by global specialist developer and fund manager GLP.

Singapore-headquartered GLP said it had closed GLP Brazil Development Partners II with BRL2.63bn of commitments, which when leveraged and fully invested is expected to reach BRL5.2bn in assets under management.

CPP Investments said it provided a BRL1.04bn commitment, representing a 39.6% interest in the fund. The size of ADIA’s commitment – or that of GLP – was not disclosed.

“Logistics is emerging as a top performing real estate sector in Brazil, given the acceleration of e-commerce in city centres like São Paulo,” said Peter Ballon, managing director and global head of real estate at CPP Investments.

“We expect the [fund’s] developments to meet an existing market need for high-quality, well-located assets, and to perform well over the long term as demand for logistics facilities and same-day delivery continues to grow.

“We have a strong conviction in the sector globally, and in GLP’s ability to execute on behalf of the partners in Brazil.”

The fund is intended to develop nine class-A logistics parks in São Paulo and has been seeded with several sites approximately 30km from the city centre.

Its first completed project of is fully leased to what it said was one of the leading e-commerce companies in Latin America.

Ralf Wessel, managing director of fund management at GLP, said: “With a population of more than 200m, Brazil is one of the most underserved logistics markets globally and one of the fastest-growing e-commerce markets in the world.

“This transaction builds upon our market-leading business in Brazil and provides GLP an opportunity to expand our existing relationships with ADIA and CPP Investments.”

GLP said it was the market leader for logistics in Brazil, with about BRL14bn in assets under management.