Brazil Property News: Pension firm invests in Brazilian real estate




11th September 2007 11:27


A Brazilian investment firm has announced plans to invest international pension schemes in Brazilian residential, real estate projects.

Astra Investimentos CEO, Andrew Jenner, claims the company has recruited pension plans worth $40 billion and £25.9 billion each with the aim to create a Brazil-based fund, including "some of the world's 300 largest pension funds."

The funds will be invested in special purpose companies involved in real estate projects with risk-sharing agreements negotiated with local builders.

Mr Jenner explained that the company's decision to invest in Brazilian real-estate was partly owing to new mortgage laws which broadened domestic access to mortgages:

"There are 12 million Brazilians paying rent. They finally have financing available. What is needed now is residential units for purchase. This is the gap we want to fill."

He added that Brazil, unlike the US, India and China, was at the beginning of its growth, meaning that its assets are more affordably priced.

The Economist Intelligence Unit predicts a GDP growth of 4.6 per cent for the country in 2007 and 4.3 per cent in 2008 and predicts that the Central Bank will continue to cut interest rates.


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