Ivanhoé Cambridge has backed the US-based Prologis in setting up a $890m (€780m) logistics joint venture in Brazil.

The C$60bn (€40.09bn) real estate investment arm of Quebec’s sovereign fund, Caisse de dépôt et placement du Québec, has agreed with Prologis to form Prologis Brazil Logistics Venture. Ivanhoé Cambridge will hold an 80% stake in the partnership.

The partnership will develop and operate logistics real estate in Brazil, specifically in São Paulo and Rio de Janeiro.

The venture, which is subject to customary closing conditions, will acquire an initial portfolio of assets of around 6.9m square feet of operating properties and 371 acres of land from Prologis’ balance sheet, with a commitment to build out the existing land bank. 

Gene Reilly, Prologis’ CEO for the Americas, said more than 40% of Brazil’s economic activities are concentrated in São Paulo and Rio de Janeiro. “With this venture, we are well-positioned,” he said.

“We are very excited to continue building our highly successful Brazil business with Ivanhoé Cambridge, a new strategic partner that brings extensive experience in Brazil specifically and in global real estate generally.”

Rita-Rose Gagné, the president for growth markets at Ivanhoé Cambridge said: “We have been investing in Brazil since 2006 and continue to do so with a long-term view.

Quality of partners and assets were the keys, she said.

“This venture aligns with our global approach to significantly increase our investments in the industrial and logistics space in key markets around the world.”