GoldenTree invests in Brazilian developer

New York-based real estate investment firm GoldenTree InSite Partners has partnered with LDI - Inteligência Urbana Completa to target real estate development projects in and around São Paulo.

GoldenTree InSite Partners has committed up to R$400 million ($220 million; €150 million) of equity to a joint venture with Brazilian developer LDI – Inteligência Urbana Completa. LDI focuses on residential, office and retail development, as well as land development.

The JV will develop real estate projects in and around the Brazilian city of São Paulo. GoldenTree’s equity commitment is expected to finance projects totaling more than R$2 billion in sales proceeds, according to the firm in a statement.

GoldenTree has committed more than $300 million of equity to real estate investments in the country since 2006. The firm’s Sao Paulo office is headed by João Teixeira, a managing director at GoldenTree.

Brazil’s real estate market today stands largely as a development market. Maximo Lima, co-founder of Sao Paulo-based private equity real estate firm Prosperitas, told PERE in a recent interview opportunities were centered around real estate development projects in the country. Brazil’s real estate market, such as its office sector, has seen prime properties being snapped up in the past few years, with a lack of prime properties available to purchase.

“It’s hard to come to Brazil and buy stabilized assets at good returns because there are very few of them and the guys that control those kinds of assets require pretty high prices to let go of them. It’s much more of a development market than it was five years ago,” he said.