Canada Pension Plan Investment Board is buying a 27.6 percent stake in the Brazilian retail landlord and developer for about $480 million, Toronto-based CPPIB said today in a statement. Rique Empreendimentos e Participacoes Ltda is buying General Growth’s remaining stake, according to a statement by the Chicago-based company. General Growth didn’t disclose the dollar value of the individual transactions.
Two General Growth entities own about 40 percent of Aliansce combined, according to data compiled by Bloomberg. The U.S. company in October bought a 14 percent stake in Aliansce from Pershing Square Capital Management LP for $195.2 million.
Aliansce, based in Rio de Janeiro, owns 17 shopping centers and two development projects around the country. Formed in 2004, the company owns or manages properties totaling more than 800,000 square meters (8.6 million square feet). The assets are located in areas including Sao Paulo, Rio de Janeiro, Salvador, Belem and Belo Horizonte.
General Growth expects the sales of its stakes to be completed in the third quarter. A spokesman, David Keating, declined to comment on the deals. The company is the biggest U.S. mall owner after Indianapolis-based Simon Property Group Inc. (SPG)
CPPIB’s purchase gives it assets in the economically dominant Southeast and fast-growing Northeast regions of Brazil, said Peter Ballon, vice president and head of Americas real estate investments for CPPIB. The company has stakes in Brazilian real estate valued at more than C$900 million ($877 million), including retail, office and warehouse properties.
CPPIB plans to buy more real estate in Brazil in partnership with local companies, Ballon said.
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