Brazil real estate firm Cyrela signs deal with overseas funds
The Brazilian property market is set to see more foreign investment following a deal between a local firm and Canadian and Singapore funds.
Cyrela Commercial Properties has entered a joint venture with GIC Real Estate, a division of the Government of Singapore Investment Corporation and Canada Pension Plan Investment Board’s (CPPIB’s) real estate subsidiary.
Together, the firms are looking to take advantage of the market for commercial property in Brazil.
The joint venture will involve an initial investment of $400 million (£242.8 million), with $150 million from each partner and $100 million from Cyrela.
GIC Real Estate and CPPIB will then have the option to increase their outlay by up to $250 million.
Cyrela said that the joint venture reaffirms the company’s belief that there are excellent opportunities for developing and managing corporate property in Brazil.
The firm recently announced that it generated gross profits of 50.82 million reais (£16.8 million) for the second quarter of the year.
