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CPP Investment Board buys share of Brazilian shopping centre company for $480M

TORONTO – The Canada Pension Plan Investment Board said Monday it has signed an agreement to acquire a 27.6 interest in Brazil’s Aliansce Shopping Centers S.A.

The US$480 million deal with General Growth Properties Inc. is expected to close in fall 2013.

“Acquiring an interest in Aliansce allows us to gain scale in a key target segment with a diversified portfolio of high-quality, modern shopping centres located throughout Brazil including the economically dominant southeast and fast-growing northeast regions,” said Peter Ballon, vice-president and head of real estate investments for CPPIB in the Americas.

“We look forward to working with Aliansce’s experienced management team, whom we know well, as we look to expand our retail platform in Brazil.”

Aliansce owns, manages and develops enclosed shopping centres in Brazil, and has a portfolio of 17 assets and two development projects located in various regions across the country including Sao Paulo, Rio de Janeiro and Salvador.

Prior to this transaction, CPPIB held a real estate portfolio in Brazil valued at more than C$900 million. The portfolio includes interests in retail and office properties.

The CPP Investment Board is a professional investment management organization based in Toronto that invests money not needed by the Canada Pension Plan to pay benefits. The CPP fund currently totals some $183.3 billion.