The $30 million joint venture between Brazilian developer Construtora Altana and private equity real estate firm Paladin Realty Partners has started operations after closing in February.
The fund is targeting Brazil’s affordable housing market which serves families with joint incomes between roughly $8,200 and $27,000.
Altana plans to build between 2,500 and 3,000 units over the next two years in São Paulo and Minas Gerais States. The units will be priced between R$60,000 (€20,600; $27,300) and R$130,000 apiece and are aimed at Brazil’s growing middle class.
Altana president Frederico Melo Azevedo said in February that despite the global economic downturn, the Brazilian residential sector would prove “to be very resilient” amid attempts to reduce real estate taxes in the country in 2009 and ease liquidity issues.
Los Angeles-based Paladin is no stranger to Brazil having raised three private equity real estate funds targeting Latin America since 1997. In addition to Brazil, the firm has developed projects in Mexico, Chile, Peru and Costa Rica largely in primary housing.