Canada Pension Plan Investment Board (CPPIB) has committed $175 million to acquire a 20 percent interest in Goodman Brazil Logistics Partnership, a new vehicle for investing in logistics and industrial assets in São Paulo and Rio de Janeiro. Launched by Australia’s Goodman Group, the $880 million partnership is also backed by APG, First State Super and GIC. It is initially acquiring four Class A warehouse logistics facilities and two development land sites. Hilary Spann, who heads CPPIB’s real estate investments in the Americas, said the goal is to deliver over 1 million square metres of logistics space, a “supply-constrained segment in Brazil.”
Canada Pension Plan Investment Board Announces R$ 500 Million Equity Target for Goodman Brazil Logistics Partnership
Toronto, Canada (June 20, 2018) – Canada Pension Plan Investment Board (CPPIB) announced today a R$ 500 million (C$175 million) equity target for a 20% interest in the newly established Goodman Brazil Logistics Partnership (the Partnership) to invest in prime logistics and industrial assets in the key gateway cities of São Paulo and Rio de Janeiro. Launched by Goodman Group, the R$ 2.5 billion (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. 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 São Paulo.”
CPPIB is a significant and growing investor in Latin America, with C$12.3 billion invested in real estate, public equities, private equity funds and direct investments, of which C$3.7 billion is invested in Brazil, as at March 31, 2018.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2018, the CPP Fund totalled $356.1 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn, Facebook or Twitter.
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