After partnering with Hines and Ascott Group of Singapore to raise nearly US$650m earlier in 2017, Vitacon is launching the smallest smart apartments in Latin America.
(Press Release) Vitacon Incorporadora e Construtora has specialized in the construction of developments with compact, smart units for the Brazilian market. The aim is to change the lifestyle of people in big cities. Accordingly, in September, the company is launching the smallest smart apartment in Latin America. Key differentials are shared common areas with spaces for coworking, laundry, co-kitchens, a pub, social hub and online delivery storage. The product also has sharing of cars, motorcycles and bicycles to facilitate getting around the city.
The Nova Higienopolis development has 100-square foot units, and is strategically located in the Center of São Paulo, the financial and services heart of Brazil. Close to this site are Metro stations, exclusive bus lanes and bike lanes. The Higienopolis neighborhood is to Sao Paulo what the Upper-East Side is to New York. It is a region brimming with options for leisure, culture and education.
“Our primary aim is to create technology to solve the housing problem in Brazil and the world. We are proud of democratizing access to dwellings, of their practicality, ease of transport, and chiefly, of giving more time back to our clients,” explains Vitacon CEO, Alexandre Lafer Frankel.
On the ground floor there are stores, which can serve both residents as well as the general public, which is not common in Brazil, and has been a feature of Vitacon projects since its foundation. Nova Higienopolis will also offer its residents tools for sharing, a fully-equipped gym, Wi-Fi in common areas and biometric locks.
The company is launching this development at a time when the Brazilian real estate industry is not exhibiting the same vitality as in previous years. According to ABRAINC data, openings in the first six months of the year fell by 3.5%. With this new building, Vitacon is reaching a General Sales Value of US$150 million for the period, holding its place among the three largest companies in the ranking for openings during this time. In seven years, Vitacon has completed construction of 42 developments, has 12 construction projects under way, and owns a landbank for 26 new projects.
Vitacon has gone through two capitalizations in 2017 for a total of R$ 2.1 billion (about US$650 million). The first is a partnership with the American fund Hines for four of the projects in its portfolio. The other is a joint venture with Ascott Group of Singapore to invest in rental residential developments with services for tenants over the next five years.
Vitacon is also investing in the first multifamily platform in Brazil. “We are going to generate a Yield of 14% per year, and take advantage of the new real estate cycle, as well as the drop in interest rates. We will have a platform with 10,000 units in the next 2 and a half years,” says Frankel.
Learn more about the 100-square foot apartment project: