Search Brazilian Properties Live Help Join Our Mailing List

Brazilian property sector 'attracting foreign investors'

Date added: 14th April, 2011 at 10:13
(view all articles from April, 2011)

Categories: Economy, Natural Resources, Tourism, Property News, Hotels

The Brazilian property sector is one of the industries attracting foreign money to Latin America's largest economy, it has been claimed.

Speaking to Financier Worldwide, Bruno Robert at law firm Lilla, Huck, Otranto, Camargo, stated that overseas buyout firms are investing in the country's real estate market.

The expert was taking part in a discussion on foreign private equity activity in Brazil, which was organised by the news provider and also included representatives from other law companies including Sullivan & Cromwell's Sergio Galvis and Simon Firth from Maples and Calder.

One of the factors the specialists felt was creating opportunities for investment in Brazil was industry fragmentation.

Mr Robert explained that this process means that companies ploughing money into the country are given the chance to accumulate capital for consolidation purposes.

However, he said that speculation was not focusing on fragmented industries.

"Good examples of sectors that are currently attracting more intensive investments are: information technology; real estate; infrastructure; energy; pharmaceuticals; and services for low-income classes," the expert said.

Mr Firth noted that people ploughing their cash into Brazilian assets are avoiding some of the political risks that would be an issue in some other emerging markets

While this attracts foreign investment, so too does the growth of consumerism in the nation, he said, while higher returns can also be found in the Latin country compared with other opportunities around the globe.

Indeed, Mr Robert noted "an investment buzz" around Brazil, with companies profiting on the growing wealth of the lower and middle classes and stable economy.

Mr Galviz, meanwhile, noted that private equity activity is being attracted by the rise of the nation's infrastructure and energy sectors.

The power industry may present a good opportunity for those looking to invest in Brazil, with developments in ethanol production and oil drilling in the news recently.

Around 200 miles south of the Rio de Janeiro coastline lies the Lula Oil Field – the most significant accumulation of the resource discovered in the Americas for three decades and touted to
have the potential to drive the country to become one of the five biggest sources for the commodity across the globe.

Meanwhile, the ethanol production industry is attracting attention from large firms including BP.

The British oil firm recently became the majority stakeholder of Companhia Nacional de Acucar e Alcool, throwing $680 million (£416 million) at the venture.

As a result of this investment in Brazil, BP expects to increase its annual output of ethanol equivalent from the country to 1.4 billion litres, or nine million barrels.

Elsewhere, BG Group has announced that it intends to plough $30 billion into its oil operations in the nation by 2020.

While real estate could benefit from the amount of money coming into the country from overseas companies, an increase in domestic and international tourism could also be an advantage.

Mr Roberts noted that the infrastructure sector, which may include hotels for sale in Brazil, is "a current must".

For anyone wishing to invest in the full potential of Brazil, Property Bond Brazil has an excellent array of Brazilian property ADNFCR-1477-ID-800499433-ADNFCR