Ivanhoé Cambridge announces investments in Brazil totalling over $300 million for the acquisition, expansion and building of shopping centres, as well as the reinforcement of a strategic partnership. In doing so, the Quebec-based company is consolidating its leadership position in Brazil’s fast-growing market.
“These new projects confirm our intent to press on with our foray into emerging countries and move forward with our real estate investment plan for Brazil,” declared Daniel Fournier, Chairman and Chief Executive Officer of Ivanhoé Cambridge.
Through its joint venture, Ancar Ivanhoe, Ivanhoé Cambridge has purchased land in Fortaleza, Brazil’s fifth-largest city, for the purpose of building a large-scale shopping centre. As part of this transaction, Ivanhoé Cambridge has forged a new partnership with Rossi Residencial, a local company which owns several parcels of land in Brazil and that boasts over 40 years of solid experience in construction and engineering.
The real estate subsidiary of the Caisse de dépôt et placement du Québec is also investing in an expansion project at one of its existing properties: Natal Shopping in Natal.
“Following the acquisition of an additional interest in Botafogo Praia Shopping in Rio de Janeiro back in January, the timing is perfect for these additional investments,” explained Claude Sirois, Senior Vice-President, Emerging Markets, Ivanhoé Cambridge. “The demand for shopping centres in Brazil is keeping pace with the country’s dynamic economy. This is an exceptional opportunity for us to position ourselves as a partner of choice for local retailers and investors in a key market in which we will continue to invest.”
In addition, Ivanhoé Cambridge is strengthening its relationship with Ancar, a strategic partner that has played a key role in providing added-value to the Brazilian real estate portfolio. The Quebec-based company has acquired an increased interest in joint venture Ancar Ivanhoe. “This additional interest reflects our strategy to develop strong, sustainable business relationships with key partners in targeted emerging markets,” indicated Claude Sirois.
Ivanhoé Cambridge entered Brazil in 2006 in the form of a joint venture with Ancar, a company with an exemplary track record in shopping centre management. Ancar Ivanhoé now co-owns ten shopping centres.