A sum of up to US$250 million would be invested by the CPP Investment Board in a joint venture, which will concentrate on the development, acquisition and management of institutional-quality commercial properties in Brazil, said the board on Monday.

It was forwarded by the fund manager that an initial sum of $150 million will be invested, which might be increased up to $250 million in the venture with Cyrela Commercial Properties S.A. Empreendimentos e Participacoes, which will also include GIC Real Estate, the real estate investment arm of the GTBovernment of Singapore Investment Corp.

According to CPPIB, developing and managing high-quality office buildings, shopping centers and distribution facilities in Brazil would be the venture’s key strategy. 

CPPIB said: “The venture will also explore the acquisition of high quality existing properties on a highly selective basis.”

The CPPIB real estate portfolio totaled $6.9 billion as on 31st March. 

“The CPP Investment Board invests the money not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million contributors and beneficiaries,” said a source.