ProLogis Sells 90% Stake in Brazilian Development to Pension Fund
- Nov 11, 2011
November 11, 2011
By Scott Baltic, Contributing Editor
Powerhouse industrial developer ProLogis Inc. announced the sale of a 90 percent interest in its not-yet-complete ProLogis CCP Cajamar Industrial Park in the Cajamar submarket of São Paulo, Brazil. The purchaser was PREVI (Caixa de Previdencia dos Funcionarios do Banco do Brasil), the largest pension fund in Brazil and Latin America.
When construction is finalized, the Cajamar park will feature seven new Class A logistics facilities with a total leasable area of about 2 million square feet, or 185,000 square meters. Current occupants include Schneider Electric and Penske Logistics.
A joint venture with Cyrela Commercial Properties (CCP), Cajamar is strategically located near the Rodoanel (Ring Road) and the Anhanguera Highway, providing excellent access to the entire São Paulo metro area.
“This is the first portfolio sale of Class-A distribution product to a major Brazilian pension fund and further solidifies industrial real estate as a major asset class with excellent investment potential,” Nick Kittredge, senior vice president & general manager of Brazil ProLogis, said. “This transaction aligns well with our joint-venture strategy to develop modern, Class-A logistics facilities and recycle capital for future developments.”
Founded in 1904 by Bank of Brazil employees, PREVI currently has more than 186,000 participants and beneficiaries. In September, Pensions & Investments magazine ranked it the world’s 24th-largest retirement fund, with $92 billion in total worldwide assets.
As of Sept. 30, 2011, the ProLogis CCP Joint Venture comprised approximately 1.2 million square feet (111,500 square meters) of operating and development properties, and more than 300 acres of land in São Paulo and Rio de Janeiro with an estimated buildout potential of 5.9 million square feet (548,100 square meters). CCP is one of Brazil’s leading commercial developers, with a portfolio of 200,000 square meters of office, industrial and retail properties and an additional 225,000 square meters under development.
Although Brazil’s industrial sector has been somewhat soft in recent months, it’s up 1.6 percent year-to-date in the São Paulo market and up 1.1 percent over the same period nationally, according to figures from the Instituto Brasileiro de Geografia e Estatistica.
The Brazilian economy overall continues to be robust, with GDP totaling about $2 trillion and showing about 7.5 percent growth in 2010.