Pensions funds to invest in Brazilian property?
Date added: 4th April, 2011 at 10:36
(view all articles from April, 2011)
Categories: Property News
It has been revealed that more pension funds are looking to emerging markets and, with global real estate coming back into favour, they may invest in Brazilian property.
The Financial News Pension Fund Barometer showed that 43 per cent of the schemes are planning to increase their allocation to developing economies.
Furthermore, it revealed that 20.6 per cent intend to invest more cash in real estate.
Pensions investment controller at SAL Richard Williams told Financial News that his company may plough cash into bricks and mortar rather than bonds.
"We are looking at long-lease property," he said. "This provides an inflation-linked match for liabilities."
He explained that this kind of real estate is normally rented out to government departments for up to three decades.
Research from analysts RNCOS recently showed there is a "massive" amount of money being invested in the Brazilian property industry, particularly in affordable housing projects.
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Think realistically 'when purchasing Brazilian property'
Date added: 1st April, 2011 at 10:48
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Numbers of hotels for sale in Brazil to rise?
Hotel Interactive reported on the comments of senior vice-president of Lodging Econometrics Bruce Ford, who explained at the BITAC luxury event that the World Cup and the Olympic Games, which are soon to be hosted by the nation, will give the industry a boost.
"They have some tremendous events coming up in Brazil over the next several years … and they will need to build hotels and they will need to become more branded," he said.
In 2014, the World Cup will be played over 12 cities in the country, while the Olympics will be held in Rio de Janeiro in 2016.
Mr Ford said that developers' plans are "largely unannounced" at the moment but he predicted that 30,000 rooms could be under construction by the end of next year.
"The more branded that they become the more that banks are going to get interested, the more that international investors are going to get interested," he asserted.
Currently, there are around 11,000 rooms being built, the news provider noted, with another 15,000 more announced as part of new projects this year.
Hotel Interactive stated that changes in the Brazilian population may also be positive news for the sector.
Indeed, the Brazilian Institute of Geography and Statistics (IBGE) recently revealed that usual real income among its people had reached R$1,540.30 (£588.57) in February compared with R$1,485.94 at the same point a year earlier, representing a 3.7 per cent annual increase.
This may reflect the increasing number of individuals in work in the country, as the figures also showed the unemployment rate dropped to 6.4 per cent last month, compared with 7.4 per cent 12 months previously.
In February, there were around 10.7 million people with jobs with formal contracts – a 6.9 per cent rise on statistics from a year earlier, or an extra 687,000 roles.
Other positive changes in Brazil reflected in statistics from the IBGE include a 1.2 per cent increase in retail sales in January compared with the month before, the ninth hike seen in as many months.
Meanwhile, nominal revenue in the sector grew by 1.1 per cent, rising for the 13th consecutive month....
Date added: 31st March, 2011 at 10:03
(view all articles from March, 2011)
More people to retire to Brazilian property?
Date added: 29th March, 2011 at 14:00
(view all articles from March, 2011)