Não
é de hoje que o Brasil desperta o interesse de investidores estrangeiros. Esse
interesse vem aumentando com a proximidade das Olimpíadas de 2016, que vão
acontecer no Rio de Janeiro. Com a proposta de apresentar para investidores o
mercado brasileiro, dois advogados de Londres escreveram para a Consultor
Jurídico um artigo exclusivo. Nele, Bryan Pickup e Rachel Burns, do escritório
internacional SJBerwin, explicam quais as oportunidades e os desafios que o
Brasil apresenta para os estrangeiros.
O
SJBerwin é um dos maiores escritórios da Inglaterra, com braços em outros 11
países da Europa e Ásia. Bryan Pickup é sócio da banca desde 1988 e se
especializou em Direito Imobiliário. É ele que comanda o departamento na área
no escritório em Londres. Rachel Burns, advogada associada, também faz parte da
divisão de Direito Imobiliário de Londres. Leia o artigo em inglês.
Is now the time for Brazil?
With all eyes on
Brazil over the next few years, as it hosts the biggest sporting events in the
world, what opportunities does the country offer to global investors looking to
branch out into the Brazilian commercial real estate market?
From strength to
strength Billions of pounds have been committed to regeneration since Brazil
became the first South American nation chosen to stage the Olympics and
Paralympics, in 2016. Brazil is also hosting the 2013 FIFA Confederations Cup
and the 2014 FIFA World Cup. The commercial real estate market though, has been
getting stronger for a number of years.
Offshore oil
discoveries and a boom for the gas industry have created a growing middle class
and, together with falling interest rates and careful government policies, have
driven strong economic growth. With average annual GDP growth at 5%, Brazil is
one of the world’s fastest growing major economies, overtaking the UK this year
to become the world’s sixth largest economy. Its strong reputation as an
emerging business epicentre and an attractive prospect for global investment
was highlighted in a recent study by Jones Lang LaSalle. Both Rio de Janeiro
and São Paulo now feature in its top 30 cities for global real estate
investment. The Association of Foreign Investors in Real Estate also ranked
Brazil as its second top pick this year for global commercial real estate
investors.
However, Brazil
remains a daunting market for investors, who must weigh up potential returns
against the risks and barriers to entry.
On the road to success
There has been huge
government investment to improve roads, railways and airports after the
International Olympic Committee rated Brazil’s transport infrastructure as low
in terms of quality and feasibility.
Although
understandably much of the construction work is tied up locally, a foreign
company with niche skills and local ground presence from which to easily export
expertise, could benefit. Even if scope for direct investment is limited, the
global investor still stands to benefit as a stronger Brazilian economy becomes
more accessible.
In September 2012
figures showed that British companies had won transport and communications
contracts in Brazil worth more than £70 million. Prime Minister David Cameron
said: “With UK companies already working closely with Rio 2016, winning
contracts and building business links, we are in an ideal position to boost
British business in Brazil from Rio 2016 and beyond.”
A place to stay
Current predictions
are optimistic that there will be enough hotel rooms by the time the Olympics
begin but there are still numerous opportunities for foreign investors looking
to make good returns in the hospitality sector.
French hotel chain
Accor recently bought 15 new hotels, 11 of which are in Brazil. Accor said this
“was in line with intentions to reinforce its leadership in emerging markets.”
Host Hotels and
Resorts, Inc are also set to develop a 150-room Novotel and a 255-room Ibis
hotel in Rio – strategically located less than one mile from the Olympic Park.
The savvy global investor
will also look beyond the Olympics. With increased media exposure, Brazil will
only become more popular as a tourist destination. Given the current under
supply of hotels, Rio and São Paulo certainly look able to absorb further
developments. There is also scope for growth outside of these two cities as
business culture and internal travel continue to expand.
Lack of high end office space
São Paulo has
historically been Brazil's business and financial hub but low supply and
increasing demand in Rio have led to soaring rents for high end office space. By
2011, Rio was rated fourth in the world (overtaking New York) for prime office
rentals behind London, Tokyo and Hong Kong.
Global developers
have seen the opportunities in Rio. Tishman Speyer have developed a high-end
office complex – Ventura Corporate Towers comprising 100,000 square meters of
prime lettable space. Other big regeneration projects underway include the
large scale waterfront redevelopment of Port Maravilha and developments around
Barra da Tijuca where over 3.2 million square feet of office and retail space
is currently under construction. With expansion limited by the mountains on one
side and the Atlantic on the other, retrofitting is being applied to modernise
and upgrade existing buildings.
Larger businesses
with international strategies are increasingly looking to Rio and São Paulo as
a springboard to the wider South American market. Global property developer and
manager Hines have operated in Brazil for years – starting out with an office
in São Paulo before branching out into Rio and Buenos Aires, Argentina. Having
developed more than 15 million square feet of office, industrial and
residential space, Hines is an excellent example of a global real estate firm
understanding the great potential of the Brazilian market and tailoring a
specific investment strategy for it.
Demand for luxury
Between 1999 and
2009 over 31 million people joined the middle class. Low unemployment, a
minimum wage and increased access to credit have contributed to a high demand
for leisure and luxury brands. With 80% of the population living in urban
areas, there are substantive opportunities in the retail sector for
international brands willing to persevere with bureaucratic red tape and spend
time building up knowledge of consumer behaviour patterns within a different
market.
In the supermarket
industry global players Carrefour and Walmart have recognised Brazil’s
significance as the third largest market in the world for groceries and have
enjoyed huge success. The fashion industry offers enormous potential for
international brands wanting to break into a market dominated by local and
national brands and with approximately 70% of the population under the age of
35, growth is likely to continue. E-commerce is also expanding as
communications and broadband become more accessible and demand for personal
computers grows. Prologis, Inc have taken advantage of this, announcing in
October that they had leased more than 1 million square feet in Brazil offering
“modern distribution facilities” due to “significant demand from e-commerce
operators.”
A different way of dealing
Deal structures in
Brazil can be unfamiliar with title to larger properties often fragmented
between different proprietors, for example, different levels in a shopping
mall. Buying in the other interests to achieve full ownership is often a longer
term aim. For a UK investor this is an alien concept.
Consequently, deal
sizes are usually smaller as there is a limit on how much capital an investor
can invest in a project. In addition, bank financing is not easy to arrange,
which highlights the difficulties of a complex market.
Ample opportunities
Despite geographical
challenges, but with a huge population, Brazil remains an attractive, but
cautious, prospect.
Demand is high in
all sectors, interest rates are favourable and relative political stability
remains, producing an economy which has the capacity to carry on growing. Foreign
investment (not just in the commercial real estate market) is increasingly
generating new jobs, additional income and consequently further demand within a
comparatively young population.
There are openings
for the global investor looking to create a diverse portfolio or expand into
the Latin American market. The 2014 World Cup and the 2016 Olympics will
undoubtedly create a legacy for Brazil, which will continue to drive Brazil’s momentum
towards becoming one of the world’s major commercial real estate investment
destinations.
Fonte
Consultor Jurídico
