Greystar Real Estate Partners is joining with the Canada Pension Plan Investment Board and Cyrela Brazil Realty in a joint venture to develop, own and operate multi-family rental housing in São Paulo, Brazil.
This milestone marks Greystar's entry into the burgeoning Brazilian rental housing market and a further step in its continued expansion in South America.
The platform and partnership first created by CPP Investments and Cyrela, which was announced in November 2019, has now expanded to include Greystar, a global leader in rental housing. Together, the joint venture partners will develop a portfolio of world-class rental housing assets across São Paulo's most desirable neighbourhoods. Each community will have distinctive design elements and amenities, appealing to a variety of tenants who seek convenience, comfort, security and an active urban lifestyle.
CPPIB to remain majority interest
CPP Investments will maintain majority interest in the joint venture, while Cyrela will also own a significant interest and Greystar will acquire an ownership interest through the expansion of the partnership.
The partnership is unique in being one of the first institutionally owned and operated multi-family real estate investment platforms in Brazil, which is experiencing a confluence of consumer behaviour and demographic trends, as well as structurally lower interest rates, that will continue to make this an attractive investment in Brazil over the coming years.
"CPP Investments sees increasing demand in the rental multifamily sector in Brazil, which will particularly benefit developers of modern, high-quality residential space," said Hilary Spann, managing director, head of Real Estate Americas, CPP Investments. "We are pleased to join our partners Cyrela and Greystar in building a best-in-class portfolio in Brazil."
