BTG and Estapar to grow into Brazil's lucrative real estate market
Wednesday, June 3, 2009
Investment firm Banking and Trading Group (BTG), the investment company owned by Brazilian billionaire Andre Esteves, aims to take advantage of the "lucrative and booming" Brazil real estate market, it is reported.
BTG has bought a 50 percent stake in local parking facility company Estapar on Monday as demand for parking space grows in the nation's main metropolitan areas. Helio Cerqueira Jr., an Allpark partner said that BTG has bought the Brazilian unit of UBS AG for $2.5 billion, and will pay in cash for half ownership of Allpark, the holding company that owns Estapar. At present Estapar, the brand name for Allpark's parking facility business controls up to 4 percent of Brazil's parking space market. Estapar controls 630 parking lots around Brazil and has more than 15,000 on-street parking stalls in 11 Brazilian cities.
According to Reuter's reports, Mr. Cerqueira commented: "It's a strategic move that will allow both BTG and Estapar to grow into Brazil's booming real estate market, because our business is closely linked to city development in urban areas." However, He declined to disclose the amount of the transaction.
The Estapar purchase will allow BTG to double that market share within three years as Brazil's car fleet grows as the Brazil’s household income is rising over the years. Prices for parking space, which rise concurrently with those of housing and office real estate, have increased in recent years close to double-digits, Cerqueira said.
According to the press release from BTG, "Estapar will have access to capital as part of a strategy which will give the company an unprecedented competitive advantage in the sector".
Meanwhile, BTG bought fuel service stations in Brazil and a U.K.-based commodities hedge fund with $700 million under management.
Social BookmarkingBTG has bought a 50 percent stake in local parking facility company Estapar on Monday as demand for parking space grows in the nation's main metropolitan areas. Helio Cerqueira Jr., an Allpark partner said that BTG has bought the Brazilian unit of UBS AG for $2.5 billion, and will pay in cash for half ownership of Allpark, the holding company that owns Estapar. At present Estapar, the brand name for Allpark's parking facility business controls up to 4 percent of Brazil's parking space market. Estapar controls 630 parking lots around Brazil and has more than 15,000 on-street parking stalls in 11 Brazilian cities.
According to Reuter's reports, Mr. Cerqueira commented: "It's a strategic move that will allow both BTG and Estapar to grow into Brazil's booming real estate market, because our business is closely linked to city development in urban areas." However, He declined to disclose the amount of the transaction.
The Estapar purchase will allow BTG to double that market share within three years as Brazil's car fleet grows as the Brazil’s household income is rising over the years. Prices for parking space, which rise concurrently with those of housing and office real estate, have increased in recent years close to double-digits, Cerqueira said.
According to the press release from BTG, "Estapar will have access to capital as part of a strategy which will give the company an unprecedented competitive advantage in the sector".
Meanwhile, BTG bought fuel service stations in Brazil and a U.K.-based commodities hedge fund with $700 million under management.
Labels: Market-Trends
