SAN FRANCISCO—Prologis Inc. said Tuesday it had agreed to buy out Cyrela Commercial Properties' share of a Brazilian joint venture between the two companies. Currently known as Prologis CCP, the JV on Prologis' Brazilian portfolio will be renamed Prologis Brazil when the logistics giant completes the R$1.2-billion (US$362-million) acquisition of Cyrela's share.
At present, the JV owns and operates 8.8 million square feet of logistics space in the Sao Paulo and Rio de Janeiro markets. The two companies established the venture in 2008.
Cyrela and Prologis reached a non-binding agreement this past January for Prologis to acquire the Brazilian company's 50% stake in the JV. At the same time, Cyrela also reached a non-binding agreement with the Canada Pension Plan Investment Board regarding an asset swap.
The swap would entail the transfer of a 33% equity stake in Cyrela's office buildings in exchange for CPPIB's 25% stake in Cyrela's industrial business. To date, the two organizations have not announced a binding agreement on the swap.
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