CPPIB invests in Goodman Brazil logistics

The Canada Pension Plan Investment Board has invested R$500 million ($132 million) for a 20 percent equity interest in the newly established Goodman Brazil Logistics Partnership, which will invest in prime logistics and industrial assets in the key gateway cities of Sao Paulo and Rio de Janeiro. Launched by Goodman Group, the R$2.5 billion ($662 million) partnership also includes global investors APG, First State Super and GIC.

“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,” says Hilary Spann, managing director, head of Americas, real estate investments. “Together with Goodman, a longstanding global real estate partner, and other like-minded investors, the Partnership will work to deliver over 1 million square meters of high-quality logistics space, a supply-constrained segment in Brazil.”

The partnership is acquiring an initial portfolio comprising four high-quality class A warehouse logistics facilities and two development land sites primarily located in the consolidated logistics markets of Sao Paulo and Rio de Janeiro. The assets are built to modern building specifications and leased to a strong customer roster. The partnership will pursue additional investments in both development opportunities and existing prime assets.

“Since 2006, when we made our first investment in Latin America, this region has been a key focus market for CPPIB. The strong fundamentals and growth prospects in Brazil and Latin America are attractive to CPPIB and we are committed to increasing our exposure over the long term,” says Rodolfo Spielmann, managing director, head of Latin America. “CPPIB is well-positioned as a valuable investment partner in the region given our long-term focus and our team of experienced investment professionals based in Sao Paulo.”

CPPIB is a significant and growing investor in Latin America, with C$12.3 billion ($9.25 billion) invested in real estate, public equities, private equity funds and direct investments, of which C$3.7 billion ($2.78 billion) is invested in Brazil, as of March 31, 2018.