How about real estate investment funds in Brazil?

[Frank_London]

Anyone with experience or insights on this kind of investment.

 

[JMBroad]

Yes, I did the research and analysis (including cash flow analysis on over 40 residential and commercial developments back in early 2008) for UK investment funds looking to enter the Brazilian market.

We did the presentation in March 2008 in London and the fund was set up in late 2008 and is currently operating in Natal, RN.

I also deal with different types of funds and corporate investors on a daily basis.

 

[Frank_London]

Hi JMBroad,

Nice to hear from an expert.

Would you be kind enough to ilustrate an initial investment of GBP 100,000 in a real estate investment fund in Brazil?

 

[JMBroad]

Hi Frank

I'm afraid I have no idea - I helped analyse what the funds would do with their money and the performance figures for the investment funds themselves. Basically how much money they would invest and what returns they could realistically achieve.

I haven't had any experience with how much of that profit the fund actually passes on to their investors.

Cheers

John

 

[Fernandovich]

Hi Frank

I'm afraid I have no idea - I helped analyse what the funds would do with their money and the performance figures for the investment funds themselves. Basically how much money they would invest and what returns they could realistically achieve.

I haven't had any experience with how much of that profit the fund actually passes on to their investors.

Cheers

John

May you just tell what was the outcome of your research, what whas the expected returns?

Thanks

 

[JMBroad]

The outcome was that the investment fund did get set up in Brazil, specifically in Natal and are they are investing in numerous different types of projects, from public infrastructure to residential and commercial developments.

I don't think they would appreciate me sharing their expected returns on a public forum anymore than any other business would appreciate someone sharing a financial breakdown of their business on a public forum.

What I can say is that during the exercise, I was in touch with numerous fund managers and financial analysts from all over the world - from India to Fiji to Canada about the performance indicators of Brazilian real estate and that every one of them was amazed at the results which can be achieved in Brazil due a series of factors unique to the country. It is currently very popular for a number of reasons, one of which are the very attractive returns, significantly higher than any other country I've analysed.

As mentioned I am still in touch with a number of fund managers and all of them are even more interested in Brazil now than they were before and many are preparing to invest if not in 2009 then during 2010 for sure.

 

[Fernandovich]

Thanks John, I understand.
By the way I have the same feeling, since the nomination of Brazil for the Olimpic Games I've been also contacted by companies willing to know more and investing in Brazil, but they seem to be quite prudent and take their time to analyze the market. 2010 will be a good year for Real State in Brazil.

Regards Fernando

 

[JMBroad]

Thanks John, I understand.
By the way I have the same feeling, since the nomination of Brazil for the Olimpic Games I've been also contacted by companies willing to know more and investing in Brazil, but they seem to be quite prudent and take their time to analyze the market. 2010 will be a good year for Real State in Brazil.

Regards Fernando

It will indeed.

 

[robh]

Thanks John, I understand.
By the way I have the same feeling, since the nomination of Brazil for the Olimpic Games I've been also contacted by companies willing to know more and investing in Brazil, but they seem to be quite prudent and take their time to analyze the market. 2010 will be a good year for Real State in Brazil.

Regards Fernando

We are starting to get an increase in interest and an increase in large investments being made by funds and investment groups in Brazil, so things are already picking up.

Regards,
Rob.