Caisse boosts stake in Indian solar producer, CPPIB in Brazilian real estate joint venture
The Caisse de dépôt et placement du Québec is investing a further US$75 million in Azure Power Global Ltd., an independent solar power developer in India.
Once the deal is approved by Azure shareholders, the investment will raise the Caisse’s stake in the company, from 41.4 per cent to 49.4 per cent. In October 2018, the firm made a US$100-million contribution to the company’s capital raising round, which brought its stake up to 40 per cent. At the time, the Caisse had invested a total of US$240 million in Azure.
Read: Caisse ups stake in Indian solar company
The Azure deal is part of the Caisse’s strategy to increase its carbon-neutral assets under management to $32 billion by 2020, noted a press release.
In other investment news, the Canada Pension Plan Investment Board is teaming up with Brazilian residential property developer Cyrela Brazil Realty in a joint venture to develop a portfolio of residential real estate in São Paulo.
The joint venture is targeting a $358-million investment between the two entities, with the CPPIB taking on an 80 per cent stake and Cyrela taking the remaining 20 per cent.
Read: CPPIB sustainability report shows increased investments in renewable energy
The venture plans to target middle- to high-income segments of the multi-family market. It has identified four development projects to date, with three secured, accounting for 56 per cent of the venture’s target equity allocation.
In a press release, the CPPIB said it expects a number of factors to help grow the business in the coming years, including structurally lower interest rates, favourable demographics, new customer behaviours, people’s desire to live closer to where they work and increasing housing prices in major cities.
“CPPIB expects the multi-family sector to particularly benefit from an improvement in São Paulo’s local business activity and consumer confidence levels, supporting long-term demand for modern, high quality residential space,” said Hilary Spann, the CPPIB’s managing director and head of Americas, real estate investments.
Read: Caisse, Ontario Teachers’ partner with insurance firm, CPPIB sells stake in parking company
Meanwhile, the Ontario Teachers’ Pension Plan is becoming a minority investor in Orgain Inc. through its limited partnership with food sector-focused private equity firm Butterfly. Ontario Teachers’ will also be making a direct investment in Orgain Inc.
The California-based company produces organic and clean nutrition products including protein powders, shakes and bars. The investment will allow the company to expand its consumer awareness, product innovation and global distribution, noted a press release.