GoldenTree InSite Invests $222M in Brazilian Real Estate JV
- Sep 24, 2008
New York City-headquartered GoldenTree InSite Partners has signed on to invest as much as $222 million of equity in a joint venture with São Paulo, Brazil-based LDI – Inteligencia Urbana Completa, for the development of real estate projects in the São Paulo, Brazil region. GoldenTree InSite’s investment will finance ground-up developments that will ultimately be valued at more than $1.1 billion. The transaction marks GoldenTree InSite’s largest single investment over the last two years in the country, where it has committed in excess of $300 million in partnership agreements during that period. “We will probably focus primarily on for-sale residential and for-sale office, and there will be some activity in shopping centers, but to a lesser extent,” Josh Pristaw, managing director with GoldenTree InSite, told CPN. GoldenTree InSite’s new partner is a strong real estate force in Brazil. Acting through various divisions, LDI develops office, retail and residential projects. The company’s Lindenberg brand is one of São Paulo’s most recognized names in upscale residential development in the country. The residential market is particularly ripe for development as, Pristaw noted, there is an 8 million housing shortage. GoldenTree InSite and LDI have designated a period of four years for the new investment endeavor, he said, “but we will probably do it faster than that based on all the opportunities we’re seeing.”The partnership with LDI comes almost precisely one year after GoldenTree InSite formed a strategic alliance to invest $100 million in office and residential projects with Quality Desenvolvimento Imobiliario, now known as Yuny Incorporadora. GoldenTree InSite kicked off the joint venture with an investment of approximately $100 million, which it just increased by $200 million in June. So far, GoldenTree InSite and Yuny have announced eight projects that are expected to generate total sales of more than $700 million. In terms of dollars, the largest of the eight undertakings is Leopoldo Green, a 365,000-square-foot Class A office building that will carry a total development price tag of about $100 million.Prior to its last two joint ventures, three-year-old GoldenTree InSite had already been active in Brazil, having commenced three residential projects in São Paulo and an office development, the 1-million-square-foot Ventura Towers in Rio de Janeiro. “We’ve been pretty bullish on Brazil for a while; we made our first commitment there in 2005,” Pristaw said. “Historically, there’s been a lack of access to capital for developers in Brazil. There’s not a lot of capital in the market so it’s attractive for private equity investors.” GoldenTree InSite is a global real estate investment firm that was formed in partnership with GoldenTree Asset Management, a manager of absolute return strategies that has over $14.3 billion in assets under management as of August 1 of this year. GoldenTree InSite pursues value-added real estate opportunities involving residential, retail, industrial, hotel and mixed-use properties in the U.S. and Brazil. The company manages over $1.1 billion in committed equity. LDI is a full-service real estate developer focused on development, land parceling, shopping centers and construction through various subsidiaries. LDI has completed over 450 residential and commercial projects.