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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (5786)	4/25/2006 2:04:33 AM
From: elmatador	Read Replies (1) \| Respond to of 217850

Real Estate market exploding in Brazil? In Curitiba I have double the benefit: 1) Market forces that affect Sao Paulo are positive to Curitiba as well. 2) S. Paulo rising housing and offices' prices: Causes people -who have real money- to move to Curitiba and also causes businesses to re-locate to Curitiba. Building at the right time: I'll finish my construction this year. Cash in on my present flat and build in Fraiburgo (350Km away from Curitiba) where I have 1.300m2 in an apple (growing and exporting) city. Jiust hoping they don't build houses on top of the sugar cane fields :-) see the boom news Sao Carlos to Sell Shares on Brazil Real Estate Boom (Update1) April 24 (Bloomberg) -- Brazilian billionaire Jorge Paulo Lemann's real-estate development company filed to sell new and existing shares as local prices for homes, offices and stores are rising almost ten times faster than economic growth. The Lemann-controlled Sao Carlos Empreendimentos e Participacoes SA plans to list its shares on the Novo Mercado, a section of the Bovespa stock exchange that requires greater disclosure of the part of its members and allows only voting shares to be traded, the company said in a filing with the securities regulator. Lemann ``couldn't be tapping the market at a better moment,' said Marcio Kawassaki, an analyst at Fator Corretora in a phone interview. ``He is telling investors that Sao Carlos can be an option amid this boom in the industry.' The 66-year-old Lemann may be seeking to reinvest in industries with strong growth prospects as interest rates are near record lows and mortgage borrowing surges, said Kawassaki. Prices for four-bedroom apartments -- which qualify as ``luxury' housing in Sao Paulo -- jumped an average 34 percent in the past two years, while economic growth averaged 3.5 percent in the same period, according to the country's real estate association. In November, Lemann and partners bulked up their stake in Sao Paulo-based Sao Carlos to 48 percent of non-voting shares from 26 percent. Sales Real estate sales in Sao Paulo, Brazil's biggest city, rose to a five-year high in 2005, according to the city's real estate association. Sao Carlos owns and administers most buildings occupied by Lojas Americanas SA, a Brazilian retail chain with about 180 stores, and is also developing several office and luxury housing complexes in Sao Paulo. Heloiza Carvalho, a spokeswoman for Lemann and his companies, declined to comment on the purchases. Tatiana Buzalaf, Sao Carlos' investor relations director, couldn't be reached for comment in her office. Sao Carlos didn't say in the filing whether it had hired a bank to manage the transaction. Shares of Sao Carlos were unchanged at 16 reais. The stock, which by the end of January was down 11 percent, has gained 23 percent so far this year. Cyrella Sao Carlos is the seventh developer to announce stock sales in Brazil this year. Rossi Residencial SA, Gafisa SA and Company SA raised more than 1 billion reais ($471 million) since February. Cyrela Brazil Realty SA Empreendimentos e Participacoes and one of its shareholders also announced plans today to sell new and existing shares in an offering. Cyrella and its shareholder Eirenor SA, which owns a 9.78 percent stake, didn't disclose how many shares will be sold. Cyrela hired Credit Suisse Group to manage the sale. Brazilian President Luiz Inacio Lula da Silva increased wages an inflation-adjusted 12 percent this year alone, triggering demand for new homes among urban workers, said Romeu Chap Chap, who heads Sao Paulo city's business panel of builders last month. Higher wages coupled with lower interest rates and faster growth in 2006 should stoke demand for new construction, -- and spur developers' stock prices, Kawassaki said. Brazil's economy will grow 4 percent this year, the central bank forecasts, after expanding 2.3 percent in 2005. The bank cut the benchmark overnight rate last week to 15.75 percent, the lowest in five years. The rate may fall to as low as 14 percent by year-end, according to a weekly survey of about 100 financial institutions by the central bank released today. Sao Carlos, which Lemann and his partners Marcel Telles and Carlos Alberto Sicupira control though a holding company, didn't give a timeframe for the transaction. It will spin off its Noxville LLP unit and then close it, seeking to incorporate the latter's assets into Sao Carlos, the filing said. Lemann, who rarely speaks in public and is a board member of Gillette Co. and Swiss Reinsurance Co., has an estimated fortune of $3.4 billion, making him Brazil's third-richest man, according to a Forbes magazine survey released March 10. To contact the reporter on this story: Guillermo Parra-Bernal in Sao Paulo at at gparra@bloomberg.net Last Updated: April 24, 2006 11:23 EDT