Greystar has joined forces with Canada Pension Plan Investment Board and Brazilian residential developer Cyrela Brazil Realty to invest £140m (R$1bn) in a build-to-rent portfolio in São Paulo.
The project is Greystar’s first investment in Brazil, after CPPIB and Cyrela formed the platform last November, with CPPIB providing 80% of the investment and Cyrela 20%.
Greystar will acquire an ownership interest as the platform expands, with CPPIB maintaining a majority interest.
The partnership will create one of the first institutionally owned and operated BTR platforms in Brazil. The joint venture will target the middle to high-income segments of the market.
Around 56% of the seed capital has been allocated to some 840 homes across four development sites, three of which have been secured. Cyrela will develop the sites and Greystar will contribute to the design and manage the properties.
Bob Faith, chief executive, chairman and founder at Greystar, said: “São Paulo is one of the most dynamic and densely populated markets in the world with a significant institutional investor presence that is attracted to the multifamily asset class because of its relative stability, compelling risk-return profile, and demographic tailwinds.”
“We see tremendous opportunity in Brazil, where the existing for-rent housing options lack the efficiency and sense of community that are hallmarks of Greystar.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
