TORONTO: June 20, 2018. The Canada Pension Plan Investment Board (CPPIB) is to allocate C$175 million for a 20 percent stake in a new logistics partnership investing in logistics and industrial assets in São Paulo and Rio de Janeiro.

Launched by Goodman Group, the C$880 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 one million square metres 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 São Paulo and Rio de Janeiro.

“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,” adds 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 São Paulo.”

CPPIB has C$12.3 billion invested in Latin America real estate, public equities, private equity funds and direct investments, of which C$3.7 billion is invested in Brazil.