Brazilian real estate continues to attract international investment funds, keen to make the most of the current situation in the Brazilian property market. Among the largest investors is Blackstone who claims that now is the time to invest in property in Brazil, as this latest BRIC Group news article explains.
Brazil’s economy is currently experiencing a downturn, a situation that has created myriad investment opportunities for foreign multinationals looking for maximum return. Companies specialising in real estate funds such as Blackstone, Exxpon and Top Capital are purportedly combing the country looking for property deals.
Consultancy firms report that interest from foreign investors is high with many companies calling on their expertise in real estate negotiations. One executive from the consulting firm Grant Thornton, quoted in Veja newspaper, said he believed that the current enthusiasm for Brazilian real estate stemmed from the weak Brazilian currency.
Strong appetite for Brazil investment
Blackstone, the world’s largest real estate fund manager, is one of the most active in Brazil. To date, the company has invested over US$1 billion in the country and according to Blackstone’s chief investment officer Kenneth Caplan, their appetite for further investment “remains strong”.
Speaking at the Brazilian Real Estate Summit 2016 held recently in Sao Paulo, Caplan said that Brazil “is an interesting environment and one that encourages us to invest”. He cited the current challenges facing the economy, but emphasised the many advantages of investing in Brazil. “Pent-up demand” is one of the main pillars driving the market according to the Blackstone executive. The company is opening an office in Brazil later this year.
Hotels and residential property in investment spotlight
Top Capital is another of the foreign companies looking at Brazilian real estate. With an investment fund of over US$1 billion, Top Capital’s interest centres on hotels. “We look for top luxury hotels in the largest Brazilian cities and budget hotels in secondary and tertiary cities,” said Tim Chen, managing partner for the company in Brazil. Top Capital sources real estate investments with at least 30 per cent discount.
For its part, Exxpon looks for Brazilian real estate with even higher discounts and is focusing on the residential sector. “The best opportunities today lie in residential,” said the company’s founding partner Jonathan Franklin. Exxpon has recently invested R$120 million in real estate assets in Brazil, the majority of which are within the residential sector.
Top emerging country for property investment
Brazil continues to rank high among countries offering the best investment opportunities. In its annual survey, the Association of Foreign Investors in Real Estate (AFIRE) placed Brazilian property in second place globally for capital appreciation and at the top of the table of emerging countries for investment.
AFIRE, one of the most important real estate associations in the world whose members have over US$2 trillion in property assets under management, found that Brazil offered capital appreciation second only to the US this year. In 2015, Brazil was ranked in fifth position.
“Brazil represents a top spot for international investment,” says Dies Poppeliers, Managing Director at BRIC Group. “Interest is high and should grow even higher as we approach the Olympic Games, now just a few months away.”
About BRIC Group
An investment company specialising in global real estate opportunities, BRIC Group is currently developing The Coral resort, in Northeast Brazil, a luxury beachfront resort. BRIC Group also offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
Sources: Veja, AFIRE