Brazilian construction company Vitacon has formed a joint venture with 7 Bridges Capital Partners that will focus on constructing 3,500 units in São Paulo. The deal is valued at R$2b.
(Press Release) Brazilian construction company Vitacon are boosting domestic and overseas investment to increase real estate developments in the country as the sector is picking up after a solid 2018.
Total investment thru a private equity venture with American Fund 7 Bridges Capital Partners is aimed at launching in next six to 12 months developments worth of R$ 2 billion in São Paulo, and up to R$ 10 billion in the next round still to come.
“The idea is to leave the structure ready and within the next 18 months we will launch up to R$ 10 billion, that is, five times larger than the first tranche,” said Vitacon´s CEO, Alexandre Frankel.
With the first tranche Vitacon’s planning to build 3,500 units in Sao Paulo, within five diferent projects. The developments will be branded as Housi, Vitacon’s real estate management firm.
After concluding the first phase, Vitacon intent to expand in the next 18 months to five Brazilian cities (Curitiba, Salvador, Belo Horizonte, Rio de Janeiro and Florianópolis). With this action – in the year celebrating its ten-year anniversary – Vitacon solidifies as one of the leading real estate companies in the country.
Vitacon’s venture capital strategy will strengthen the firm in Brazil’s real estate business. “We are ready to seek market opportunities. And we want to expand. Also we are creating innovative hybrid models, they are real urban HUBs”, says Frankel.
As an innovative proposal to improve people’s lives in the city, the company has created a mobility concept promoting smart homes, close to work and public transportation to simplify everyday life, generating practicality, design and proposing innovations.