CHICAGO, July 19, 2012 – Equity International (EI), the privately held investor and builder of leading real estate companies outside of the United States, announced today the sale of its ownership interest in Brazilian Finance & Real Estate (BFRE) to BTG Pactual and Banco PanAmericano S.A., as well as its exit from BR Malls.
The BFRE transaction, recently approved by Brazil’s Central Bank, was initially announced in December 2011. Under the terms, BTG Pactual, the leading Brazilian investment bank, acquired Brazilian Capital, BFRE’s real estate investment management business, and Banco PanAmericano (Bovespa:BPNM4) acquired BFRE’s other business lines including Brazilian Mortgages, BM Sua Casa and Brazilian Securities. Banco PanAmericano is controlled jointly by BTG Pactual and Caixa Econômica Federal.
EI made its original investment in São Paulo-based BFRE in 2009, recognizing the potential of BFRE’s specialty finance platform and its market-leading reputation. BFRE is the holding company for four business units: Brazilian Capital, an investment management company and creator of the first real estate private equity fund in Brazil; Brazilian Mortgages, Brazil’s first independent mortgage company offering commercial and residential mortgages; BM Sua Casa, a retail mortgage provider targeting middle-income and entry-level homebuyers; and Brazilian Securities, Brazil’s leading and largest real estate securitization company. During EI’s partnership with BFRE, the Company achieved a number of milestones including Brazilian Securities’ 2010 completion of the largest securitization in Brazil’s history (R$1.7 billion) and the expansion of BM Sua Casa retail loan stores from 32 to 99.
“BFRE and its founders are widely known as leaders and innovators, having established the real estate securitization and investment management businesses in Brazil. We are pleased that BTG Pactual and Banco PanAmericano, both leading Brazilian enterprises, have recognized the value of BFRE’s platform,” said Gary Garrabrant, chief executive officer of EI.
EI also confirmed its exit from BR Malls (Bovespa:BRML3), Brazil’s largest and most diversified retail property company, in February 2012. Headquartered in Rio de Janeiro, BR Malls is distinguished by its high-quality portfolio, significant service business, professional management and efficient operating systems. Since EI’s initial investment in 2006, BR Malls has grown its portfolio from 7 to 47 shopping malls with nearly 1.5 million square meters of gross leasable area and more than 6,000 stores attracting 430 million visitors annually.
“BR Malls is one of Brazil’s foremost success stories. We are delighted to have contributed to its phenomenal growth and fully expect Carlos Medeiros and the management team to continue to thrive in this dynamic real estate sector,” said Thomas McDonald, EI’s chief strategic officer.
“EI was an early investor in Brazil and we continue to be enthusiastic about the opportunities Brazil presents across new and existing sectors,” added Mr. Garrabrant. EI’s Brazil portfolio includes privately held industry leaders AGV Logística (logistics and warehousing), GuardeAqui (self-storage) and, most recently, Grupo Thá (regional homebuilding), closed in March 2012.