Is this market hot? The CPP thinks so

The Canada Pension Plan Investment Board says it will now invest $480 million to buy a quarter share in a shopping center corporation in Brazil.

The move comes this week and on the heels of the CPPIB’s decision late last year to pump another $343 million into joint partnerships to acquire two real estate portfolios in the South American nation now readying for both the Olympics and the World Cup.

Canadian property investors on the hunt for new markets are already taking note of the growing interest of the pension plan. Many are also seeing it as a sort of endorsement for Brazil as it looks to inject billions of dollars of new residential construction into Sao Paulo and other urban communities marred by slums.

Companies like EcoHouse Developments are tapping into that individual investor interest, offering Canadians short-term opportunities grow their money in government-approved residential developments meant to meet Brazil’s housing crisis.

The company is building under the Minha Casa Minha Vida social housing project, although its property investment is fully regulated and managed by UK solicitors, according to EcoHouse.

Economists remain largely bullish on Brazil’s long-term future, although near-term growth is more tepid than many had projected.

That has contributed to slowing in the race to full employment, with the jobless rate climbing to 6.0 per cent in June. That’s up from 5.8 per cent for the prior month.

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