SAO PAOLO, BRAZIL-Greenwich, CT-based Starwood Capital Group is investing about $156 million to acquire a 33% stake in the commercial real estate branch of locally based MRV Engenhana e Participacoes SA, a publicly traded low-income homebuilder. The MRV Logistica currently is funding a $478-million plan to develop 10 million square feet of industrial properties in Brazil.
MRV Logistica historically focuses on industrial, but also will take on retail and office on an opportunistic basis. The other shareholders of MRV Logistica are contributing about $64 million to the development fund, which has already delivered or is in development on about 1.5 million square feet of the 10 million square feet planned. Rubens Menin, chairman and CEO of the commercial MRV firm, said in a statement that there is a huge pent-up demand for industrial space in his country.
Barry Sternlicht, chairman and CEO of Starwood, said in the statement that he is confident in MRV’s execution capabilities. The capabilities are "demonstrated by a tenfold increase in EBITDA at MRV between 2007 and 2010. We remain bullish on the market’s fundamentals.”
His firm opened an office here in August 2010, staffed by Ryan Hawley, Vitor Senra and Rodolfo Senra. Hawley said in the statement that though Brazil is known as one of the world’s best markets right now, it was still hard work to find a good partner. “Finding the right way to invest is more challenging. We believe that this management team is one of the strongest in Brazil,” Hawley said.
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