Greystar Joins CPP Investments and Cyrela in Development of Brazilian Multifamily Property Sector
Posted on 09/01/2020
Greystar Real Estate Partners, LLC is investing into a joint venture between Canada Pension Plan Investment Board (CPP Investments) and Cyrela Brazil Realty (Cyrela). The current joint venture is aimed at developing, owning, and operating purpose-built multifamily rental housing in São Paulo. The platform and partnership first created by CPP Investments and Cyrela, which was announced in November 2019, has now expanded to include Greystar. The joint venture continues to target an investment of up to R$1 billion in combined equity. CPP Investments will maintain majority interest in the joint venture, Cyrela will also own a significant interest and Greystar will acquire an ownership interest through the expansion of the partnership. Four development projects located on premium sites in São Paulo were initially identified as assets to seed the joint venture, with three already secured by the platform. This gives CPP Investments, Greystar and Cyrela’s partnership immediate scale in the market and accounts for approximately 40% of the joint venture’s target equity allocation.
Greystar will manage the properties acquired through the joint venture along with contributing to the design process, with Cyrela developing and building the assets.
Cyrela Brazil Realty is among the largest residential property developers in the Brazilian real estate market.
