The Brazilian property market is set to see more foreign investment following a deal between Cyrela Commercial Properties and Canadian and Singapore funds.
Cyrela Commercial Properties Empreendimentos e Particoacoes concentrates on developing and acquiring office buildings, shopping malls and distribution centers for renting. They currently own 190,000 sq m of leasable area and 159,000 sq m of projects which are undergoing work and will be delivered within the next few years.
Recently Cyrela 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 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 expand their outlay by up to $250 million.
Cyrela said that the joint venture indicate the continuing prosperity of the Brazilian property market following the government's efforts to boost the sector.
In related news, Cyrela, Gafisa and Rossi Residencial are likely to have posted higher operational profits than in 2008, analysts from five banks and brokerages told Reuters.
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