Brazilian asset manager SPX sees a good time to bet on domestic real estate investing – executive


By Paula Arend Laier

SAO PAULO, October 18 (Reuters)Brazilian asset manager SPX Capital has ambitious plans to bet on its real estate unit, aiming to quintuple the value of its global real estate assets over the next few years, the unit’s managing director, Pedro Daltro, told Reuters.

Less than a year since its launch as a joint venture between SPX Capital and SYN Prop Tech SYNE3.SA, formerly known as Cyrela Commercial Properties, the real estate unit manages a primarily residential portfolio worth approximately 1.9 billion reais ($360 million). SPX has more than 86 billion reais in global global assets.

As SPX is set to open an office in Asia in addition to its existing bases in Brazil, the United States, Britain and Portugal, Daltro of the real estate unit believes that Brazil’s economic prospects are favorable to domestic real estate assets, pointing out that the benchmark Selic interest rate is expected to fall from the second half of next year.

“A bet of ours and of many in the market is that interest rates should stay high for a while, but start to cool down from the middle of next year,” he said. “If this bet is right, taking a position in the Brazilian real estate market now is a smart move.”

In SPX’s property portfolio, residential developments currently dominate, but this is set to change, with growth in segments such as logistics and in specific business assets.

“We want to be in densely populated areas,” Daltro said, citing the Greater Sao Paulo region, where SPX’s assets are concentrated, and other higher-density cities such as Belo Horizonte and Brasilia.

Corporate buildings are also on SPX’s radar, which sees office towers making a strong comeback in some key areas, such as the Faria Lima district, known as the financial and commercial center of Sao Paulo, but much less so in other areas. other regions.

Demand for such properties “should calm down a bit,” he said, given the currently higher rates and the slowing economy.

Monetary policy uncertainties in other countries further cloud the near-term scenario, he said, while outlining an overseas investment plan next year.

“At some point next year we will be looking for something outside of Brazil,” Daltro added, citing the US and UK markets. With interest rates rising rapidly in these markets, there will be a shortage of capital and opportunities will arise, he said.

($1 = 5.2818 reais)

(Reporting by Paula Arend Laier; Writing by Peter Frontini; Editing by Kenneth Maxwell)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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