Brazil
GID International Group and São Paulo, Brazil based OAS Empreendimentos ("OAS-E") have formed a joint venture partnership to invest in real estate development, construction and acquisitions throughout Brazil with a core focus on for-sale multifamily development projects. The partnership, OAS-E/GID Brazil Investment Advisers, will focus on providing investment management services to international and Brazilian investors; the venture also includes an initial investment to develop approximately 500,000 square feet of for-sale residential space in three projects located in Brasilia and São Paulo.
The new partnership will target core Brazil markets that have been historically profitable for new development and which demonstrate supply/demand voids, strong employment characteristics, and qualified household and population growth.
OAS-E is the wholly-owned real estate development affiliate of OAS Engenharia, which includes Brazil’s fourth largest construction company, OAS Constructora; the privately held 35-year old vertically integrated firm has developed over 40,000 residential units throughout Brazil. The OAS-Empreendimentos brand is regarded as a leading builder of moderate and middle income for-sale multifamily and residential mixed use projects throughout Brazil. OAS-E is certified by Brazil’s federal government housing agency, known as Caixa.
OAS-E has offices in Salvador, Brasilia, Salvador São Paulo, Porto Alegre and Rio de Janeiro. The company has approximately 300 employees. Its parent company, Constructora OAS, has 22 offices in Brazil and employs 22,000; it generated approximately BR4.8B in revenues in 2010 and is currently building three World Cup soccer stadiums for the 2014 games, a 2016 Olympic stadium complex and subway systems in Rio and São Paulo.
The OAS-E/GID venture has three projects underway totaling approximately 800 residential units with over 26,000 square feet of retail space in two of Brazil’s major metropolitan areas:
- Parque Butanta is a 23-story, 176 unit tower in the Vila Butanta quarter of São Paulo. The community offers an extensive amenity program including pool, fitness center, internet (business center), function rooms, and structured parking. The project is scheduled for delivery by November, 2013.
- Piazza Di Roma in São Paulo is a twin 22-story for sale residential investment. Located in the Mooca quarter of São Paulo, the project features 168 3-bedroom or duplex units. The project will commence construction in September 2011, with homes scheduled for delivery in December 2013.
- Max Home and Mall is a mixed use project featuring 504 apartment homes and approximately 50 retail stores in two towers (17 and 25 stories) located a block from the Brasilia subway system. Max Home is located in the Aguas Claras quarter of Brasilia, which has been recognized as a successful example of suburban development not commonly found in the higher density cities of São Paulo and Rio de Janeiro. The project is poised to benefit from the expected doubling of the area’s population over the next few years, and has an appealing mix of amenities including commanding views, two pools, demonstration kitchen, spa, playground, fitness center, and parking. The project is scheduled for delivery in early 2014.
The OAS-E/GID venture is actively pursuing new residential projects throughout Brazil.