Live Nation, the world’s largest entertainment company, and global development company Oak View Group are teaming up for a 20,000-capacity arena in São Paulo, Brazil.   

The city’s mayor, Ricardo Nunes, announced the collaboration — which will be in partnership with Brazilian-based event company GL Events — on Friday (Oct. 15).

The city of São Paulo, which has a population of 12 million, awarded the three entities a 30-year lease for the Anhembi campus, which spans 4 million square feet. Arena São Paulo, as it will be called, will anchor the Anhembi entertainment district and produce live events including concerts, sports games and family entertainment. The Anhembi district, where the Sambadrome is located, is already famed for hosting the city’s Carnival parade, among other events.

“Today is a historic day for our city because we are starting the implementation of the Arena São Paulo, a project led by the three best companies in the world in their industry,” Nunes said in a release. “We are going to build the best arena in Latin America.” 

The arena marks the beginning of a redevelopment project for the Anhembi district, according to the developers. The area currently features a convention center and the outdoor Arena Anhembi, which has hosted big-name acts including Elton John, Green Day, Maroon 5 and more. The new partnership will build the new indoor arena from the ground up, plus renovate the convention center, exhibition pavilions and outdoor events area. The stakeholders project that the complex will generate cash flows of approximately 5 billion Brazilian reais ($907 million) of economic benefit for the city and local businesses.  

Construction is expected to begin in 2022 with a grand opening slated for 2024.  

“This new venue will add to our portfolio of 200+ venues worldwide and we are proud to contribute to the growth of São Paulo as a live music hub and international touring destination,” Michael Rapino, Live Nation Entertainment CEO and president, said in a release. 

Olivier Ginon, founder and chairman of GL events, said he is “excited to partner with OVG and Live Nation Entertainment” for the new arena, which is being designed by architectural firm Gensler. Ginon believes Arena São Paulo will pair nicely with the company’s network of venues, including Rio de Janeiro’s Jeunesse Arena, which seats over 18,000 for concerts. 

Performance rights revenues in Brazil, which is Latin America’s largest concerts market, dropped 15.5% last year to $45.6 million.