Canada Pension Plan Investment Board (CPPIB) is acquiring a 20% stake in a BRL$2.5bn (€577.2m) partnership launched by Goodman Group to invest in prime industrial assets in Brazil.
Goodman said it has set up Goodman Brazil Logistics Partnership (GBLP) to invest alongside its global capital partners who share the same investment horizon and confidence in the Brazilian market.
The partners include CPPIB, Dutch pension fund manager APG, the Australian superannuation fund First State Super and Singapore’s GIC.
Cesar Nasser, CEO of Goodman Brazil said the partnership has been established with around US$270m (€233.4m) of existing assets and work in progress that can be developed to deliver over 1m sqm of logistics space.
“With the Brazilian market experiencing under-supply of modern, high-quality space, we have an opportunity to expand our global platform in Brazil for the benefit of our customers.”
Goodman has been in Brazil since 2012.
CPPIB said it will invest BRL$500m for a 20% stake in GBLP.
Hilary Spann, a managing director and head of CPPIB’s Americas real estate investments, said: “CPPIB expects the industrial sector to particularly benefit from an improvement in Brazil’s domestic consumption, supporting long-term demand for modern, efficient logistics space.
“Together with Goodman, a longstanding global real estate partner, and other like-minded investors, the partnership will work to deliver over one million square metres of high-quality logistics space, a supply-constrained segment in Brazil.”
As at the end of the first quarter of the year, CPPIB had invested C$12.3bn (€8bn) in real estate, public equities, private equity funds and direct investments in Latin America, of which C$3.7bn is invested in Brazil.