TORONTO, Oct 25 (Reuters) - The Canada Pension PlanInvestment Board expanded its real estate presence in Brazil onFriday, saying it has formed a partnership with Banco BTGPactual to invest in residential development.
The CPPIB, one of the world's largest pension fundinvestors, said it had committed an equity investment of $240million to give it a 40 percent stake in the venture, while BTGPactual will make an equal investment.
The CPPIB will have a seat on the investment committee,which approves all investments made by the venture, and BTGPactual will act as the investment advisor, managing theday-to-day affairs.
"The fundamentals of Brazil's residential development sectorare compelling as a growing middle class, increased economicactivity, and favorable demographic shifts drive increaseddemand for new housing," Peter Ballon, the CPPIB's head of realestate investments in the Americas, said in a statement.
The CPPIB invests the assets of Canada's largest publicpension fund. Its holdings include shopping malls, real estateand infrastructure.
The CPPIB said the value of its real estate portfolio inBrazil was C$1.5 billion ($1.44 billion) at the end ofSeptember.
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