Dias Carneiro advises CPPIB on Hilton hotels deal

Dias Carneiro Advogados advised HSI Special Account Stay Fundo de Investimento em Participações, a fund managed by HSI Real Estate and held mostly by an affiliate of the Canada Pension Plan Investment Board (CPPIB), on the acquisition of a 50% stake in the companies that own the properties housing the Hilton Copacabana hotel in Rio de Janeiro and the Hilton Morumbi hotel in São Paulo. Mayer Brown represented the sellers in the transaction.

The stake acquired was previously held in full by investment funds managed by HSI Real Estate. Following the transaction, the HSI Special Account Stay Fundo de Investimento em Participações now holds 50% of each of the companies that own the two hotel assets. The deal marks the first move by CPPIB into Brazil’s hotel sector, with the pension fund expanding its presence in the country’s real estate market through a partnership with HSI Real Estate. The transaction involved the structuring and negotiation of an investment operation with the participation of special purpose entities, real estate investment funds and a foreign institutional investor, requiring coordination across corporate, real estate, regulatory, financial and governance matters. The value of the deal was not disclosed.

The Dias Carneiro team was led by partners José Paulo Marzagão (pictured left), of the Real Estate practice, and Paula Seabra (pictured right), of the M&A practice, with support from counsel Fernando Becker Mau and associate Beatriz Miranda Pereira Costa.

The sellers were advised by Mayer Brown, with the team led by Corporate partner Daniel Gunzburger and associate Luciano Campos.