CPP Investment Board

CPP Investment Board

August 10, 2009 16:53 ET

CPP Investment Board Commits up to US$250 Million to Brazilian Commercial Properties Joint Venture

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2009) - The CPP Investment Board (CPPIB) announced today that it has entered into a joint venture with Cyrela Commercial Properties S.A. Empreendimentos e Participacoes (CCP) (BOVESPA:CCPR3). The venture, which will also include GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corporation, will focus on the development, acquisition and management of institutional-quality commercial properties in Brazil. CPPIB's investment will consist initially of a US$150 million commitment to the venture with the option to increase up to US$250 million at CPPIB's discretion.

Based in Sao Paulo, CCP is a leading developer, owner and manager of commercial properties in Brazil, which includes a portfolio of Triple A office buildings in the prime office districts of Sao Paulo, as well as shopping centres and industrial properties.

"We are extremely pleased to be partnering with CCP in our first real estate joint venture in South America," said Graeme Eadie, Senior Vice President, Real Estate Investments. "Brazil is the leading economy in South America and represents one of the world's dominant emerging markets. The anticipated growth in the country's middle class will continue to drive demand for commercial real estate across a broad range of sectors," he added.

"Through CCP's extensive experience in the commercial property sector, we believe this venture is well-positioned to benefit from Brazil's positive demographics over the next decade, which is consistent with our long-term investment strategy designed to help sustain the CPP for decades and generations," Eadie said.

The venture's principal strategy will be to develop and manage high-quality office buildings, shopping centres and distribution facilities in Brazil. The venture will also explore the acquisition of high quality existing properties on a highly selective basis.

At March 31, 2009, the CPPIB real estate portfolio totaled $6.9 billion. Eighty-nine per cent is invested in developed markets and 11 per cent is invested in select emerging markets including investments in Mexico, Turkey and China.

About the CPP Investment Board

The CPP Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At March 31, 2009, the CPP Fund totaled $105.5 billion. For more information about the CPP Investment Board, please visit www.cppib.ca.

About CCP

CCP is a leading Brazilian company engaged in property investment, leasing and sales, with a focus on the development and acquisition of high-end corporate towers, shopping malls and distribution centers. CCP pursues opportunities to acquire, sell and resell commercial properties that, based on its experience and knowledge of the commercial real estate market, offer the potential for returns. CCP currently has leasable area of 190,900 sq.m., plus a further 242,200 sq.m. under development for delivery in the coming years.

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