Ivanhoé Cambridge and Hines have formed a new joint venture to develop, own, and operate best-in-class multifamily buildings in São Paulo, Brazil.
”The venture will have the capacity to invest up to R$750 million of equity to deliver highly amenitized, international-caliber products and services to a market that is lacking in purpose-built multifamily rental projects,” said the companies in a joint statement.
Hines’ multifamily property management firm, Willowick Residential, will be responsible for the property management of each project upon completion.
“Ivanhoé Cambridge strongly believes in the global development of the residential rental-housing business and Brazil is no exception. We are very excited to enter the multifamily rental market in São Paulo together with Hines as first movers in the institutionalization of the sector in Brazil”, declared Adriano Mantesso, Managing Director, Head of Latin America, Ivanhoé Cambridge.
“This joint venture with our longtime partner, Ivanhoé Cambridge, gives us the opportunity to bring our extensive global multifamily experience to this ever-growing market. There is a deep, unmet demand for high-quality, professionally managed rental projects in São Paulo, and a venture of this magnitude will provide a highly differentiated value proposition to customers,” said Alfonso Munk, Hines chief investment officer, Americas.
The joint venture’s investment strategy will focus on projects located in vibrant urban submarkets close to transportation, employment hubs, shopping malls and entertainment centres.
Both Ivanhoé Cambridge and Hines have expansive footprints in Brazil in a variety of product types including living/housing, office, industrial/logistics, and retail. Ivanhoé Cambridge has a current Brazilian commercial portfolio comprising almost 18 million square feet, and Hines Brazil has operations spanning 37 million square feet of real estate in its 24 years in Brazil.