Sotheby's International Realty, which sells real estate, is preparing a portfolio of investment options in Brazil through its Brazilian arm to offer in the United Arab Emirates, Qatar and Bahrain in September. The information was supplied by the director of the company in Brazil, Fábio Rossi.
According to the executive, one of the directors of Sotheby's in Brazil traveled to Qatar and the Emirates last month and spoke, by means of Sotheby's offices in those countries, with groups of investors interested in Brazilian real estate.
After the meeting, it was decided that the Brazilian Sotheby's would return to the region for a road show, bringing along projects that would match the interests of its local investors. According to Rossi, Arab investors showed interest in commercial real estate, farms, and hotel and tourist enterprises.
"The return of commercial real estate in Brazil ranges from 0.8% to 1% per month," says Rossi. The percentage indicates how much the value of real estate increases during the period. The global average is 3% to 4% per year, explains the executive.
With regard to the farms, they requested productive ones, and in the field of tourism and hotels, the potential investors wanted to know how the segment should behave in Brazil as a result of the FIFA World Cup, to be held in the country in 2014.
According to Rossi, out of all groups with which Sotheby's held talks, five displayed greater interest. Out of those five, two want 100% of the real estate or businesses and three want to operate with Brazilian partners. Each group should invest approximately US$ 50 million.
According to Rossi, the Arabs are interested in the city of São Paulo as a target for investment, but more so in Rio de Janeiro. The city is Brazil's best known among the Arabs. The executive claims that there is much space for foreign investment in Brazilian real estate, as it currently represents 5% of the total.
Worldwide, the rate is 30% to 40%. He explains that Brazil, out of the so-called BRICs, is now the number one investment target. "The country has not been tapped into much yet, so there are more opportunities," says the executive.
Sotheby's is a multinational company with 540 offices in 29 different countries. It has five offices in Brazil, being two in São Paulo, one in Rio de Janeiro, one in Natal, the capital of the state of Rio Grande do Norte, and two in Campo Grande, the capital of Mato Grosso do Sul.
According to Rossi, the fact that the company is present in 29 countries is a deciding factor for business, because each office is able to offer the products in its investment portfolio to the others. In October, for example, a meeting will be held in the United States for Sotheby's 50 largest offices, and each office will showcase its products.