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Och-Ziff targets Brazilian property market

The global alternative asset manager’s $308m investment in Brazil is the latest in a host of private equity real estate investors looking to capitalize on the country’s growing property market.

Och-Ziff Capital Management has partnered with Votorantim Financas, the finance arm of Brazil’s largest industrial group, to invest in Brazil’s commercial and residential markets. The duo plans to invest at least 500 million reais ($308 million; €207 million) in real estate in the country, according to a Reuters report. A spokesperson for Och-Ziff declined to comment on the deal.

Following the agreement, Och-Ziff and Votorantim Financas plan to partner with Brazilian commercial and residential developers on office, industrial and retail projects. Investments will start at 500 million reais but more is expected to be invested, according to Silvia Benvenuti, Votorantim Financas head of real estate projects.

The growing Brazilian market has attracted a multitude of global investors, investing across the country’s property sectors. In May, Virginia-based JER Partners opened offices in Brazil and Mexico to capitalize on real estate opportunities in the region.

Bahrain-based Ithmaar Development Company, along with Kuwait-based Al Safat Investment Company and Bahrain-based Arabian Ventures also launched a $500 million Shariah-compliant real estate fund to invest in the Latin American market in May, with a primary focus on Brazil, Argentina, Colombia, Mexico, Ecuador, Venezuela, Chile and Costa Rica.

New York-based Och-Ziff was founded in 1994 by Daniel Och, a former Goldman Sachs executive, along with the Ziff publishing family. It has approximately $33 billion under management.