Canada Pension Plan Investment Board (CPP Investments) and Abu Dhabi Investment Authority (ADIA) are backing a BRL5.2bn (鈧�845m) Brazilian logistics fund managed by global specialist developer and fund manager .
Singapore-headquartered GLP said it had closed GLP Brazil Development Partners II with BRL2.63bn of commitments, which when leveraged and fully invested is expected to reach BRL5.2bn in assets under management.
CPP Investments said it provided a BRL1.04bn commitment, representing a 39.6% interest in the fund. The size of ADIA鈥檚 commitment 鈥� or that of GLP 鈥� was not disclosed.
鈥淟ogistics is emerging as a top performing real estate sector in Brazil, given the acceleration of e-commerce in city centres like Sa虄o Paulo,鈥� said Peter Ballon, managing director and global head of real estate at CPP Investments.
鈥淲e expect the [fund鈥檚] developments to meet an existing market need for high-quality, well-located assets, and to perform well over the long term as demand for logistics facilities and same-day delivery continues to grow.
鈥淲e have a strong conviction in the sector globally, and in GLP鈥檚 ability to execute on behalf of the partners in Brazil.鈥�
The fund is intended to develop nine class-A logistics parks in Sa虄o Paulo and has been seeded with several sites approximately 30km from the city centre.
Its first completed project of is fully leased to what it said was one of the leading e-commerce companies in Latin America.
Ralf Wessel, managing director of fund management at GLP, said: 鈥淲ith a population of more than 200m, Brazil is one of the most underserved logistics markets globally and one of the fastest-growing e-commerce markets in the world.
鈥淭his transaction builds upon our market-leading business in Brazil and provides GLP an opportunity to expand our existing relationships with ADIA and CPP Investments.鈥�
GLP said it was the market leader for logistics in Brazil, with about BRL14bn in assets under management.
