Canada Pension Plan Investment Board (CPP Investments) is investing approximately C$200m (€146m) to acquire a 49.5% stake in two landmark Hilton hotels in Brazil through a joint venture with Brazilian manager HSI.
The deal gives CPP Investments part of the 545-room Hilton Copacabana in Rio de Janeiro and the 503-room Hilton Morumbi in São Paulo, both of which are currently undergoing phased renovations.
Ricardo Szlejf, managing director and head of real assets for Latin America at CPP Investments, said: “The investment in Hilton Copacabana and Hilton Morumbi provides CPP Investments with exposure to high-quality hospitality assets in a sector where we see strong long-term fundamentals supported by resilient domestic demand, growing international demand and a limited supply of new hotel rooms.
“Brazil continues to present compelling opportunities for disciplined, long-term investors. Our partnership with HSI secures access to one of the country’s leading real estate investment managers with deep local expertise and proven execution to help generate attractive long-term returns for the CPP Fund.”
Max Lima, founding partner and CEO of HSI, said: “We are proud to welcome CPP Investments as a partner of HSI. This partnership is strategic for our firm and reflects the strength of our platform and track record across Brazilian real estate.
“We look forward to working together through this hospitality joint venture, as we continue to see solid fundamentals across Brazilian real estate, with strong demand and limited future supply supporting attractive risk-adjusted returns.”
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