Canada Pension Plan forms real estate venture with Brazil's BTG

TORONTO Fri Oct 25, 2013 11:00am EDT

TORONTO Oct 25 (Reuters) - The Canada Pension Plan Investment Board expanded its real estate presence in Brazil on Friday, saying it has formed a partnership with Banco BTG Pactual to invest in residential development.

The CPPIB, one of the world's largest pension fund investors, said it had committed an equity investment of $240 million to give it a 40 percent stake in the venture, while BTG Pactual will make an equal investment.

The CPPIB will have a seat on the investment committee, which approves all investments made by the venture, and BTG Pactual will act as the investment advisor, managing the day-to-day affairs.

"The fundamentals of Brazil's residential development sector are compelling as a growing middle class, increased economic activity, and favorable demographic shifts drive increased demand for new housing," Peter Ballon, the CPPIB's head of real estate investments in the Americas, said in a statement.

The CPPIB invests the assets of Canada's largest public pension fund. Its holdings include shopping malls, real estate and infrastructure.

The CPPIB said the value of its real estate portfolio in Brazil was C$1.5 billion ($1.44 billion) at the end of September.

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