Canada Pension Plan Investment Board, Toronto, formed a real estate joint venture with Brazilian investment bank Banco BTG Pactual to invest in residential developments in Brazil.
The board, which oversees C$188.9 billion (US$180.1 billion) in assets, and BTG Pactual will each make an equity investment of US$240 million and get a 40% interest in the venture. The remaining 20% stake in the venture will be offered to BTG's wealth management clients, said Linda Sims, CPPIB spokeswoman.
BTG will be investment adviser for the joint venture, while CPPIB will have a seat on the joint venture's investment committee, which will approve all investments made by the venture.
CPPIB's real estate portfolio in Brazil is valued at C$1.5 billion as of Sept. 30. The board's overall real estate portfolio was C$19.9 billion as of that date.