Big real estate players turn to Brazil in search of unrealized opportunities

Recently, Brazil has experienced its fair share of political unrest and economic struggles. Consequently, the rents and occupancy levels have dropped. While this may deter many investors from investing in Brazil’s real estate, some of the global players, such as the Blackstone Group, Brookfield Property Partners, and Global Logistic Properties, see opportunities in the risky country. The reluctance of investors to enter Brazil can be seen through the decline in office property sales, from 1.92 billion in 2012 to 584 million in 2014.

In addition to opening up its first office in Brazil, Blackstone real estate group recently purchased ownership in a Brazilian homebuilder as well as four office buildings in Rio de Janeiro. Also, Brookfield properties recently bought seven office properties. Although these companies see profitable opportunities, recent investors, mainly Brazilian based companies, have taken some hits due to poor economic fundamentals. 

Two of Brazil’s most appealing characteristics for investors are its emerging middle class and its copious amounts of natural resources. Tishman Speyer, a global real estate firm, has been active in the Brazilian real estate market ever since it “doubled down” in 2002. Once again, Tishman Speyer is optimistic about the opportunities available while the country is in a period of uncertainty. The sharp decline in the Brazilian real, valued at approximately 32 U.S cents, is another reason why U.S. companies are entering now. At the same time, investors realize there’s no timetable for then the economy and political situation will improve. The uncertainty of when the recovery will happen is a risk that only the most confident are willing to take on. 

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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