The Canada Pension Plan Investment Board announced that they have agreed to acquire a 27.6% stake in Aliansce Shopping Centers SA from General Growth Properties. The deal was tagged at US$480 million. The Rio-based Aliansce is one of Brazil's foremost publicly traded real estate companies. The company is focused on developing, managing and owning enclosed shopping centers. The deal is expected to close by fall of this year.
"Our largest portfolios by far (in Brazil) have been in the industrial sector and we have been actively looking to grow in the retail sector there. This deal addresses that desire," said CPPIB's head of real estate investments in the Americas, Peter Balloon.
"This transaction represents a significant expansion of CPPIB's real estate portfolio in Brazil, which remains a strategic market for us over the long term," added Balloon.
CPPIB currently owns a real estate portfolio which was valued at CAD900 million or US$877.11 million prior to the Aliansce deal. General Growth said that the results of the deal topped Wall Street expectations. The company mentioned that they have reached a small side deal to sell a small portion of Aliansce to Rique Empreendimentos e Participacoes Ltda.
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