SINGAPORE - Singapore investment company GIC has signed a forward purchase agreement for an office building in downtown Rio de Janeiro for an undisclosed sum.

The building, named Eco Sapucai, is being developed by Hemisfério Sul Investimentos (HSI), a Brazilian private equity real estate fund manager.

Construction is expected to be completed in the first quarter of next year, at which point the deal will be completed. Such an agreement protects GIC's interest should HSI fail to deliver.

Designed by renowned Brazilian architect Oscar Niemeyer, the 86,060 sqm AAA office building will comprise 17 office storeys, with shops on the ground floor and a helideck at the top.

Regional Head of Americas at GIC Real Estate Tia Miyamoto said the building is a welcome addition to GIC's portfolio.

"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 allows HSI to focus on its performance in other properties, such as shopping centres, residential allotments, self-storage and hotels. HSI holds the largest and most diversified real estate portfolio in Brazil.

The acquisition marks GIC's first wholly-owned investment in Latin America.