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SAO PAULO, BRAZIL-GoldenTree InSite Partners of New York City has teamed with a fast-growing real estate developer based in this South American metropolis to invest $100 million of equity in projects throughout the country. Office and residential properties will be the focus of the strategic alliance between GoldenTree and Quality Desenvolvimento Imobiliario, a venture that has already secured its initial two investments.
“We are very excited to partner with a developer of Quality's caliber,” GoldenTree InSite president Tom Shapiro says in unveiling the initiative. As it is, Shapiro's firm is already building three residential projects and one office complex on its own in Brazil, a commitment that Shapiro says underscores his firm's belief in the underlying fundamentals of the country. “Strong GDP growth, falling interest rates and an increasingly liquid mortgage market all point to continued strength in Brazilian real estate,” he says. Among the projects GoldenTree InSite is already developing is a 1.07-million-sf office complex in Rio de Janeiro, while the three residential projects are all in Sao Paulo. They include a pair of 29-story buildings with 112 residences; two 34-story towers yielding 62 units; and Campo Belo, also a 220-unit complex that will also feature two towers.
From Quality's perspective, the partnership will give the 11-year-old company “access to tremendous real estate expertise” and the necessary capital to expand the firm's business, according to co-CEO Marcos Mariz de Oliveira Yunes. “We intend to develop first-class office and residential projects throughout Brazil, capitalizing on strong underlying economic fundamentals and demographic growth,” says the Quality principal.
The first acquisitions with GoldenTree include a 25-story office condominium building on Avenida Berrini, one of Sao Paulo's top business addresses. The 275-unit property will target small companies and professional offices, with the condos an average size of just 515 sf. The project is being built with another Brazilian firm, Even Construtora, an entity that both GoldenTree and Quality have worked with on previous developments.
The residential project purchased by the alliance is a 23-story building in the Sao Paulo's Vila Carrao district, an increasingly popular neighborhood that has seen substantial home price appreciation in the past several years. The Vila Carrao project was designed by noted Brazilian architect Jonas Birger. “As evidenced by these two initial deals, the alliance with Quality will give us access to a substantial deal pipeline in addition to significant proprietary deal flow for years to come,” says GoldenTree principal Josh Pristaw.
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