CPPIB forms JV in Sao Paulo’s multifamily property sector

The Canada Pension Plan Investment Board (CPPIB) has formed a joint venture with Cyrela Brazil Realty to develop a portfolio of residential real estate across select neighborhoods in Sao Paulo, Brazil.

The joint venture will target an investment of up to R$1 billion (C$358 million/$271 million) in combined equity. CPPIB will own an 80 percent interest in the joint venture, and Cyrela will own the remaining 20 percent interest. The partnership will target the middle- to high-income segments of the multifamily market.

Cyrela will manage the properties acquired and developed by the joint venture.

The partnership creates one of the first institutionally owned and operated multifamily real estate investment platforms in Brazil. The combination of structurally lower interest rates, favorable demographics, new customer behaviors, people wishing to live closer to work, and the secular trend of increasing housing prices in major cities, will foster the development of thi