Arab Investors Looking for Productive Land in Brazil

    Brazilian farm

    Brazilian farm Sotheby's International Realty, which sells real estate, is preparing a portfolio of investment options in Brazil through its Brazilian arm to offer in the United Arab Emirates, Qatar and Bahrain in September. The information was supplied by the director of the company in Brazil, Fábio Rossi.

    According to the executive, one of the directors of Sotheby's in Brazil traveled to Qatar and the Emirates last month and spoke, by means of Sotheby's offices in those countries, with groups of investors interested in Brazilian real estate.

    After the meeting, it was decided that the Brazilian Sotheby's would return to the region for a road show, bringing along projects that would match the interests of its local investors. According to Rossi, Arab investors showed interest in commercial real estate, farms, and hotel and tourist enterprises.

    "The return of commercial real estate in Brazil ranges from 0.8% to 1% per month," says Rossi. The percentage indicates how much the value of real estate increases during the period. The global average is 3% to 4% per year, explains the executive.

    With regard to the farms, they requested productive ones, and in the field of tourism and hotels, the potential investors wanted to know how the segment should behave in Brazil as a result of the FIFA World Cup, to be held in the country in 2014.

    According to Rossi, out of all groups with which Sotheby's held talks, five displayed greater interest. Out of those five, two want 100% of the real estate or businesses and three want to operate with Brazilian partners. Each group should invest approximately US$ 50 million.

    According to Rossi, the Arabs are interested in the city of São Paulo as a target for investment, but more so in Rio de Janeiro. The city is Brazil's best known among the Arabs. The executive claims that there is much space for foreign investment in Brazilian real estate, as it currently represents 5% of the total.

    Worldwide, the rate is 30% to 40%. He explains that Brazil, out of the so-called BRICs, is now the number one investment target. "The country has not been tapped into much yet, so there are more opportunities," says the executive.

    Sotheby's is a multinational company with 540 offices in 29 different countries. It has five offices in Brazil, being two in São Paulo, one in Rio de Janeiro, one in Natal, the capital of the state of Rio Grande do Norte, and two in Campo Grande, the capital of Mato Grosso do Sul.

    According to Rossi, the fact that the company is present in 29 countries is a deciding factor for business, because each office is able to offer the products in its investment portfolio to the others. In October, for example, a meeting will be held in the United States for Sotheby's 50 largest offices, and each office will showcase its products.

    Anba

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Petrobras ship platform

    Brazil’s Petrobras Overtakes Shell to Become World’s 4th Largest Energy Co

    Brazilian state-controlled oil and gas multinational Petrobras has risen from the ninth to the ...

    Brazil Cinemas Must Show 35 Days of Brazilian Movies in 2005

    Brazilian movie theaters will have to show Brazilian films for at least 35 days ...

    John Deere in Brazil

    US Tractor Maker John Deere Invests US$ 80 Million in Brazil

    US-based agriculture equipment maker John Deere announced its intention to invest approximately US$ 80 ...

    Brazilian Loan to Angola to Be Secured by Oil

    The Brazilian government will grant the government of Angola US$ 580 million in credit ...

    Brazil Creates Over 1 Million Jobs, But Less than Last Year

    1,083,776 jobs were created in Brazil between January and July of this year. Even ...

    EU Doubts It Will Reach Agreement with Brazil and Mercosur

    The European Union does not believe a free trade agreement with Mercosur can be ...

    But We Survived

    By late evening firecrackers were popping continuously and the smoke in the street was ...

    Free TV for politicians

    Free TV Electoral Campaign in Brazil Is Measured in Hundredths of a Second

    Free political campaign advertising has started this Tuesday, August 17, in Brazil. Like the ...

    Protest against corruption in Brasília, Brazil

    Arab Spring Winds Are Now Blowing Through Brazil

    On the 7th of September – Independence Day in Brazil – the population of ...

    Dollar in wallet

    Plan: No More Dollar in Deals Between Brazil and Mercosur Partners

    The chiefs of state of Mercosur will consider this week during the summit in ...