GIC buys office building in Rio de Janeiro

SINGAPORE'S sovereign wealth fund GIC is buying an office building in Brazil in its first wholly-owned investment in the Latin America region.

The building, named Eco Sapucai, in downtown Rio de Janeiro, is developed by private equity real estate fund manager Hemisfério Sul Investimentos (HSI). Construction work on it is expected to be completed in the first quarter of next year.

It will have up to 5,000 square metres in floor area, and will also be one of the few in the city to hold green building certificate LEED Gold.

The investment amount was not disclosed.

Said GIC real estate regional head of Americas Tia Miyamoto: "Eco Sapucai is a welcome addition to our global portfolio of best-in-class assets. It is a quality asset in a prime location. We believe strong demand for this first-rate office property will translate into a stable income stream which suits GIC as a long-term investor."

HSI's founder and partner Maximo Lima said the divestiture is a strategic part of is plans. "The transaction will deliver excellent results to our investors and allow us to focus on our performance in other properties, such as shopping centres, residential allotments, self-storage and hotels."