TozziniFreire guides Greystar’s entry into Brazil
Brazilian law firm TozziniFreire has acted for Greystar Real Estate Partners on its entry into the South American country with the creation of a joint venture
The joint venture with Cyrela Brazil Realty and Canada Pension Plan Investment Board (CPP Investments) will develop, own, rent and operate purpose-built multifamily rental housing in São Paulo, incorporating and building a portfolio of residential buildings for rent, by means of the acquisition of quotas of the Snowbird real estate investment funds (Snowbird Parallel Fundo de Investimento Imobiliário and Snowbird Master Fundo de Investimento Imobiliário), previously held by CPP Investments.
Through the transaction, Greybird acquires a 5-per cent stake in Snowbird.
The joint venture is targeting an investment of up to 1 billion reais ($189 million) in combined equity, and marks the entry of Greystar Real Estate Partners, a leading player in student rental housing in the US, into the Brazilian market, and represents an important step in the expansion project in the South American real estate market.
CPP Investments will maintain majority interest in the joint venture, Cyrela will own a significant interest and Greystar will acquire an ownership interest through the expansion of the partnership.
Four development projects located on premium sites in São Paulo were initially identified as assets to seed the joint venture, with three already secured by the platform. This gives CPP Investments, Greystar and Cyrela’s partnership immediate scale in the market and accounts for approximately 40 per cent of the joint venture’s target equity allocation, Charleston, SC-based Greystar said in a press release.
“São Paulo is one of the most dynamic and densely populated markets in the world with a significant institutional investor presence that is attracted to the multifamily asset class because of its relative stability, compelling risk-return profile, and demographic tailwinds. We see tremendous opportunity in Brazil, where the existing for-rent housing options lack the efficiency and sense of community that are hallmarks of Greystar,” Bob Faith, Greystar’s founder, chairman and CEO, said.
TozziniFreire’s team advising Greystar was led by partner João Busin (pictured), with associate Luis Felipe Bueno Sima.
In the US, Greystar was advised by Jones Day, with a team comprising partner Trisha L. Mowbray and associates Arthur L. Badra, Jordan T. Wohlner and Michael J. Austin.
