An affiliate of Singapore’s sovereign wealth fund GIC has reached a deal to acquire Eco Sapucai, an office building in Downtown Rio de Janeiro, marking its first wholly-owned investment in Latin America.
The project that is being developed by Hemisfério Sul Investimentos (HSI) is expected to be completed in the first quarter of 2015.
“Eco Sapucai is designed by renowned Brazilian architect, Oscar Niemeyer. At delivery, it will be one of the highest quality buildings in the Rio de Janeiro market with floor plates of up to 5,000 sqm and one of the city´s best parking ratios. Additionally, the building is expected to be one the few in the city with LEED Gold, a green building certification program that recognises best‐in‐class building strategies and practices,” the company said in a statement.
Earlier this year, Singapore’s sovereign wealth fund had opened an office in Sao Paulo after it had acquired stakes in some Brazilian companies, and GIC had also said it was confident of the long-term Latin America growth story, while adding that it would focus on investments in real estate, healthcare, financial and business services, in that continent.
Its investments in Latin America include a just over five per cent stake in communications technology provider Linx, along with equity interests in Sao Paulo-based food processor BRF, water and sewage treatment firm Aegea Saneamento e Participacoes. Less than five per cent of the Fund’s total assets are in Latin America.
Last month GIC had formed a JV with Indonesia’s Rajawali Group to jointly invest up to $500 million in property projects in Indonesia, largely in its capital city Jakarta’s central business district. In October, it had forayed into New Zealand by setting up a joint venture company with Goodman property, and in October, it had concluded a series of real estate deals, including making its first corporate investment in Turkey, where it bought a minority stake in Istanbul-based Ronesans Gayrimenkul Yatirim (RGY) for €250m ($312.4 million).
During the same month, the fund had also bought a building in Tokyo – Pacific Century Place Marunouchi – for $1.7 billion from Secured Capital Japan Co, the real estate arm of Hong Kong-based alternative-asset manager PAG.
In September this year, Singapore state fund along with two Canadian pension funds invested $700 million in Greenwich-based XPO Logistics Inc, that in into airfreight forwarding and warehouse management.