Cyrela Commercial Properties SA signed two non-binding memorandums of understanding with the Canada Pension Plan Investment Board and Prologis Inc. for the operation of logistics warehouses and investment in corporate offices.
Under the agreement with the Canadian pension fund, Cyrela will transfer a 33% equity interest in the companies that own the CCP corporate offices portfolio. CPPIB, in turn, will exchange its interest in the companies that own a logistic warehouses portfolio, in which the company already owns a 25% interest in.
The duo is also considering forming US$400 million in new joint ventures to invest in corporate offices.
Meanwhile, the Prologis agreement concerns the Brazilian developer's sale of its 50% interest in the logistic warehouses portfolio at market value. The deal is dependent on the successful completion of the CPPIB transaction.
If both memorandums of understanding are exercised and completed, Cyrela will own a 25% stake in the logistics warehouses portfolio, while Prologis will own the remaining 75%. A concerned landbank portfolio, meanwhile, will remain a 50/50 joint venture between the two.
The transactions are subject to a number of conditions, including the approval of Brazilian antitrust authorities.