Vision Brazil Investments (VBI), a Sao Paulo, Brazil-based integrated real estate investment firm, recently received a major commitment to its latest real estate fund, the Brazil Real Estate Opportunities Fund II.
The Oregon Investment Council authorized the Oregon Public Employee Retirement Fund (OPERF) to commit $100 million to the opportunistic fund, which will seek investments in office, industrial and retail properties, as well as development ventures to create for-sale affordable housing, according to OPERF documents. The fund has set investment parameters of 35 to 50 percent in affordable housing, 25 to 40 percent in office, 10 to 35 percent in retail and 5 to 20 percent in logistics.
As far as markets are concerned, the fund plans to invest in some secondary cities in Brazil in addition to the country’s two major cities, Sao Paulo and Rio de Janeiro, the documents noted. Through its development and property repositioning strategies, VBI is targeting a net IRR of 20 percent.
Fund II, which is looking to raise $500 million with the help of placement agent Park Madison Partners, held a first closing near the end of 2010 and is scheduled to hold a final closing at the end of June 2011. According to the OPERF documents, another potential investor considering a commitment is Partners Group, an affiliate of PCA Real Estate. PCA happens to be OPERF’s real estate consultant. Additional potential investors include European and US pension funds, banks and high-net-worth individuals.
VBI closed its first real estate fund on $200 million in 2009 and executed 12 transactions, primarily in Sao Paulo and Rio de Janeiro. The investments were a mix of office, retail and for-sale housing. Fund I is expected to provide investors with a net IRR of 22 percent.