Canada Pension Plan Investment Board is now part of an investment consortium to partner with Brazilian real estate developer SKR for a rental project in Sao Paulo. The consortium comprises Greystar Real Estate Partners and Cyrela Brazil.
Canada Pension Plan Investment Board manages around $456.7 billion in pension assets. These assets managed are on behalf of 20 million contributors and beneficiaries of the plan, media reports said.
The consortium along with SKR will develop, own and operate a rental multifamily project in Brazil. Hilary Spann, Managing Director, Head of Real Estate Americas, CPP Investments, told the media, “CPP Investments continues to see increasing demand in the rental multifamily sector in Brazil, which will particularly benefit developers of modern, high-quality residential space. We are pleased to venture with SKR on this project and we look forward to expanding our purpose-built multifamily portfolio in Brazil.”
It is reported that the project will be unique to the Brazilian skyline. The project is expected to be delivered in 2023. The pandemic stalled Brazil’s real estate market growth in the last few months. As of November, the market remained fragile with home prices in Sao Paulo rising by measly 0.21 percent in the third quarter of 2020.
However, demand is slowly improving due to historic low interest rates following the pandemic’s slump. Sao Paulo State Housing Union recorded 4,341 new residential units that were sold in the city. This was up by 32.3 percent from the previous year, media reports said.