The Canada Pension Plan Investment Board (CPPIB) announced this week that it has signed an agreement to acquire a 27.6% interest in Aliansce Shopping Centers S.A. from General Growth Properties, Inc. for an equity amount of $480 million (USD). The departing strategy for CPPIB making an investment in a publicly traded real estate company, rather than the underlying asset is expected to close in fall 2013.

Based in Rio de Janeiro, Aliansce (Bovespa: ALSC3) is one of Brazil’s top publicly traded real estate operating companies and is focused exclusively on the ownership, management and development of enclosed shopping centers. Aliansce’s owned retail portfolio consists of 17 stabilized assets and two development projects located in various regions across the country.

“Acquiring an interest in Aliansce allows us to gain scale in a key target segment with a diversified portfolio of high-quality, modern shopping centers located throughout Brazil including the economically dominant Southeast and fast-growing Northeast regions,” said Peter Ballon, Vice-President and Head of Real Estate Investments ‒ Americas, CPPIB. “We look forward to working with Aliansce’s experienced management team, whom we know well, as we look to expand our retail platform in Brazil.”

Formed in 2004, Aliansce owns and/or manages a retail portfolio totaling more than 800,000 square meters (8.6 million sq. ft.). These assets are located in key areas including São Paulo, Rio de Janeiro, Salvador, Belem and Belo Horizonte.

CPPIB’s real estate portfolio in Brazil is invested alongside best-in-class operating partners, with a value of more than C$900 million prior to this transaction. The portfolio includes interests in retail, office and logistics properties totaling more than 3.3 million square meters (35 million square feet), including development assets.

“This transaction represents a significant expansion of CPPIB’s real estate portfolio in Brazil which remains a strategic market for us over the long term,” said Mr. Ballon. “We will continue to seek attractive investment opportunities across the retail, logistics and office sectors through partnerships with top-tier local partners.”

Volatile bond markets stung the Canada Pension Plan Investment Board in the fund’s fiscal first quarter of the year, limiting its return to just 1.1 percent.
Annualized, the gain amounts to 4.4 percent, less than half of what the pension fund made in 2012.

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2013, the CPP Fund totaled $183.3 billion (CDN), of which $19.9 billion (CDN) represented real estate investments. For more information about CPPIB, please visit www.cppib.com.

The Tubac Golf Resort & Spa, located at 65 Avenida de Otero in Tubac, Arizona, 40 minutes south of Tucson at base of the Santa Rita Mountains, has announced the hiring of Ricardo Velez as International Sales Manager to handle the rapidly increasing demand for hotel rooms and meeting space from the maquiladoras and produce companies located in Sonora, Mexico.

The Tubac Resort is on an historic 500-acre Otero Cattle Ranch with 52 hacienda suites, 16 casita suites, 29 posada rooms and the Otero House, surrounding the pool/cabana and mini golf course. Tubac Resort, with the continued development of the port at Guaymas, the recent establishment of factories such as Mercedes Benz among others and the rapid growth of the existing businesses in Sonora is positioning itself to capitalize on its perfect location and premium facilities by having “the most knowledgeable and experienced sales person in the region representing them,” according to the announcement.

“Nobody knows Nogales better,” says Linda Cormier, VP of Hotel Operations at the Tubac Golf Resort & Spa. “Ricardo brings over 35 years of experience in this market to our resort. He knows everyone and everyone knows and respects him.” Velez, who was born in Nogales, and has seen the highs and lows through the years, agrees that the future looks bright. “About six years ago many maquiladoras sent their business to China,” Velez said. “Now they are coming back, and I look forward to bringing that business to the Tubac Golf Resort & Spa and to Santa Cruz County, my home.”

The Tubac Resort also offers meeting and event facilities including six grand meeting rooms, stunning outdoor settings and a mission style chapel totaling over 7,000 square feet. Indulgences include a full-service destination spa, the resort’s signature restaurant and its 27-hole championship golf course made famous by the movie Tin Cup with Kevin Costner and Rene Russo. Less than a mile away from the resort are the charming artisans’ Village of Tubac and Tubac Presidio Historic Park.

For more information about the Tubac Golf Resort & Spa, please call 520-398-3355 or visit https://www.TubacGolfResort.com

RETAIL SPACE -1331 E. 21^st Street, Tucson
Mac-Gray Services, Inc. has renewed their lease of 6,265 sq. ft. at 1331 E. 21st Street in Tucson. Mac-Gray is a longtime leader in the commercial laundry industry, they serve academic institutions, multifamily housing properties, on-premise laundries, military & government facilities and hotels & motels. Principals, Russell W. Hall, SIOR, GSCS and Stephen D. Cohen, Industrial Specialists with Cushman & Wakefield / PICOR represented the landlord in this transaction while Robert Delaney with CBRE of Tucson represented the tenant.

RETAIL SPACE – 9484 E. 22^ND Street, Tucson
Mattress Firm leased 3,881 sq. ft. at 9484 E 22^ND Street, Suite 120 in Tucson. This is Mattress Firms 12th store and the farthest east in the Tucson area. The company started as a small idea of three childhood friends who opened the first store in Houston, TX on July 4th 1986. Mattress Firm has over a thousand locations nationwide, with 32 locations in the Phoenix area. Paul Schloss and Alan Tanner with Bourn Advisory Services of Tucson represented the landlord and Darren Pitts and Bonnie Arlia of Velocity Retail in Phoenix represented the tenant.

RETAIL SPACE – 9484 E. 22^ND Street, Tucson
Five Guys Burgers & Fries has leased 2,300 sq. ft. at 9484 E. 22^ND Street, Suite 110 for store number five in Tucson. Five Guys Burgers was named the fastest growing restaurant franchise in 2012 by Forbes. This location will provide seating for total of 86, with 66 interior and 20 on its 300 sq. ft. patio. The store opens Monday, August 12; hours of operation are 11:00 a.m. to 10:00 p.m. Paul Schloss and Alan Tanner with Bourn Advisory Services of Tucson represented the landlord and Chris Ray and Mike Leonard of Catalyst Commercial Group, PLC represented the tenant.

RETAIL SPACE – 6360 E Golf Links Road, Tucson
Subway Real Estate, LLC has leased 2,173 sq. ft. in the Safeway anchored shopping center at the southeast corner of Golf Links and Wilmot. They currently occupy a 1,290 sq. ft. space at 6320 E Golf Links Rd at the same center and will be moving to the larger space, with a drive-thru within the next few months. David Hammack of Volk Company Commercial Real Estate represented the Landlord, Karlin Golf Links, LLC.

RETAIL SPACE – 9484 E. 22^ND Street, Tucson
Chipotle leased 1,983 sq. ft. at 9484 E 22^nd Street, Suite 130 in Tucson. Scheduled to open first week of September. Paul Schloss and Alan Tanner with Bourn Advisory Services of Tucson represented the landlord and Ben Craney of West Commercial Real Estate Advisors in Tucson represented the tenant.

INDUSTRIAL SPACE – 4500 E. Speedway, Suite 75, Tucson
The ‘Diaper Bank of Southern Arizona’, has renewed their lease of 1,600 sq. ft. at 4500 E. Speedway, Suite 75 in Tucson from Presson Midway, LLC. Since 1996 they have been involved in providing diapers to those under the poverty line where no public assistance exists. There are more than 100 Diaper Banks across the country today. The Diaper bank uses more than 100 volunteers annually to provide diapers and incontinence supplies to those in need. For more information on this worthwhile organization go to: www.diaperbank.org or call, 520-325-1400.

Principals Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialist with Cushman & Wakefield / PICOR represented the landlord in this transaction.

OFFICE SPACE – 180 W. Magee, Suite 164, Tucson
Capitol Indemnity Corporation a Commercial Insurance Provider, leased 1,505 sq. ft. at 180 W. Magee Road, Suite 164 in Tucson from WV, LLC. Tom Knox, SIOR, Principal and Office Specialist with Cushman & Wakefield / PICOR, represented the tenant in this transaction while Mike Gross of  Tucson Realty & Trust represented the landlord.

INDUSTRIAL SPACE – 1870 West Prince Rd., Suite 49, Tucson
Shred-it-USA has renewed their lease of 920 sq. ft. at 1870 West Prince Rd., Suite 49 in Tucson from Presson Corporation. Shred-it is reported to be the world’s leading document destruction and recycling company. Established in 1988 they now have 140 Shred-it branches around the world providing document destruction services to more than 180,000 clients. Among the services provided are secure paper shredding at clients’ location, hard drive and media destruction along with Security Imaging services. For additional information on their services call (480) 447-4500.

Rob Glaser, SIOR, CCIM, Principal and Paul Hooker, Industrial Specialists with Cushman & Wakefield / PICOR represented the landlord in this transaction.

RETAIL SPACE – 316 E. Congress St., Tucson
The ‘Good Oak Bar’ leased space at 316 E Congress from Rialto Block Project for a new restaurant concept that will specialize in serving Arizona only wines and beers.  The restaurant is scheduled to open in September / October.

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[ismember]Diaper Bank lease at Midway Business Park – asking rates were $.41- $.53 / SF/NNN
Shred-it-USA at Exchange Place – asking rates were $.50 – $.68/SF /industrial gross.
Subway at Golf Links & Wilmot – asking rate was $20/SF/NNN. Marketed as pad with drive-thru.[/ismember]