GoldenTree InSite Partners has committed up to R$200 million ($104 million; €74 million) of equity to a joint venture with developer Atua Construtora to invest in affordable housing in Brazil.
The joint venture will focus on developments in and around the city of São Paulo. It has already closed on its first investment – a 395-unit project in Belem, a middle-income neighborhood in the city.
The deal is GoldenTree’s first investment in Brazil’s affordable housing market. The New York-based firm’s commitment is expected to finance projects totaling more than R$1.2 billion in total sales proceeds, according to a statement.
There is significant “unmet demand” for affordable housing in the country, said Josh Pristaw, GoldenTree managing director. “Of the often-quoted eight million unit housing deficit in Brazil, over 95 percent is concentrated in the low and middle-low income segment,” he added.
The Brazilian government’s increased funding to affordable housing buyers has also increased the availability of mortgages, added Joao Teixeira, managing director and head of GoldenTree’s Sao Paulo office.
Earlier this month, GoldenTree committed up to R$400 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 joint venture is targeting real estate projects in and around São Paulo.