Brasil Brokers Participacoes SA (BBRK3), the country's largest real estate broker, has agreed to buy two brokerages in Sao Paulo for $124 million (250 million reais), with the aim of increasing revenue from existing home sales to 35 percent in five years, up from 15 percent today. qatar seal
Sergio Newlands Freire, the CEO of Brasil, said this in an interview with Bloomberg. Freire expects a rise in sales from consumers who can now get more bank credit for home purchases, according to him. He added that the country's near-full employment could boost buyer demand.
Brasil has agreed to purchase 65 percent of real estate broker Miranda Imobiliaria for 6.6 million reais ($3.2 million US) and 55 percent of Bamberg Planejamento & Empreendimento Imobiliarios for 25.5 million reais ($12.6 million US). It has agreed to buy the remaining 45 percent of Bamberg over the course of four years.
As part of a strategy to grow in the secondary housing sector, Brazil expects to purchase at least three more companies this year.
"The Brazilian secondary real estate brokerage industry is made up of small companies," Freire told Bloomberg. "Acquisitions to consolidate this market are part of our growth strategy."
However, existing economic data do not support Freire's optimism. Slowing housing credit was a feature of the first half of the year, which coincided with weakening economic growth.
According to economists polled by the central bank on Aug. 20, Brazil's gross domestic product will grow by just 1.75 percent this year, the second-weakest result in nine years.
According to Bloomberg, Freire is optimistic that new ventures and existing unit sales would rise in the second half.
Sao Paulo and Rio de Janeiro remain the company's most important markets.
According to a regulatory filing on Aug. 14, Brasil Brokers had net profits of 21 million reais ($10.4 million US) in the second quarter, down 34 percent from 31.7 million reais ($15.6 million US) a year earlier. Contract revenues dropped 8% to 4.6 billion reais ($2.27 billion) in the first quarter.
WTGoodman is buying a warehouse portfolio in Brazil.
For A$1.49 billion ($1.38 billion), a joint venture between Goodman Group and WTorre SA has offered to buy 34 industrial properties in Brazil from BR Properties SA.
According to Bloomberg, BR Properties will use the proceeds from the joint venture, Sao Paulo-based WTGoodman, to pay down debt, pay dividends, and purchase bank shares.
In a statement, Goodman said, "The proposed transaction is consistent with Goodman's global investment and funds management strategy."
Goodman, headquartered in Sydney, is partnering with local operators and global investors to expand in the United States, China, and Brazil. Real estate, including warehouses, is owned, developed, and managed by the company. Goodman had a total of A$24 billion in properties under administration as of September 30.
According to Bloomberg, the company was looking to raise A$400 million a year ago to finance its joint venture with WTorre, which focuses on developing prime logistics and industrial assets. The partnership's first project, in Rio de Janeiro, is scheduled to be completed this year.