Vitacon, a real estate development and construction company, has formed a joint venture with 7 Bridges Capital Partners. The JV will focus on constructing 3,500 units in São Paulo, Brazil. The deal is worth R$2 billion (about $516 million).
SAO PAULO, April 4, 2019 /PRNewswire/ — Vitacon, the Real Estate Development and Construction Company, has just signed a private equity deal with the American fund 7 Bridges Capital Partners. The formation of this joint venture in partnership with the foreign investment platform calls for the construction of 3,500 units in the city of São Paulo, and ensures for Vitacon a R$ 2 billion intake in Overall Sales Value (VGV – Valor Geral de Vendas) in coming months.
But prospects for expansion may go as high as R$ 10 billion in VGV. “The plan is that within 18 months the structure will be ready for a VGV of up to 10 billion reais,” says Alexandre Frankel, company founder and CEO.
Famous for its compact units, which prioritize the sustainable urban lifestyle, Vitacon is aiming to transform the economy for the construction market with production at scale, offering the industry new models for financing, and a new culture for this segment.
The announcement of the joint venture encompasses five construction projects located in the key regions of São Paulo, but in the next 18 months, Vitacon intends to branch out to other cities in Brazil. “In the next phase we are going to evaluate startups in Curitiba, Salvador, Belo Horizonte, Rio de Janeiro and Florianópolis.” With this action – during the year when it is celebrating its 10th anniversary – Vitacon is consolidating its position as one of the leading companies in Brazil’s real estate segment.
The management and development of 3,500 units constructed with 7 Bridges will be carried out through Housi, a brand launched by Vitacon for its real estate management activities. Currently, this arm of the business is managing 2,500 units and has the goal of reaching 15,000 by the end of this year, including real estate developments by other companies in a number of Brazilian cities.
“This joint venture shows the company’s strength in this industry. We’re ready to look for market opportunities. And we want to expand our landbank, in addition to which, we are creating innovative hybrid models, and they are true urban hubs,” he concluded.