SAO PAULO, Oct 18 (Reuters) - Brazilian asset manager
SPX Capital has ambitious plans to bet on its real estate unit,
aiming to quintuple the value of its global property assets over
the next few years, the unit's Chief Executive Pedro Daltro told
Less than a year since it was launched as a joint venture
between SPX Capital and SYN Prop Tech, formerly known
as Cyrela Commercial Properties, the real estate unit manages a
mostly residential portfolio worth about 1.9 billion reais ($360
million). SPX has more than 86 billion reais in overall global
While SPX is about to open an office in Asia in addition to
its existing bases in Brazil, the United States, Britain and
Portugal, the real estate unit's Daltro believes Brazil's
economic outlook is favorable for domestic property assets,
highlighting that the benchmark Selic interest rate is expected
to drop from the second half of next year.
"A bet of ours and of many in the market is that interest
rates should stay high for a period, but start to cool down from
the middle of next year," he said. "If this bet is right, taking
a position in the Brazilian real estate market now is a smart
In SPX's real estate portfolio, residential developments
dominate for now, but this is poised to change, with growth in
segments such as logistics and in specific corporate assets.
"We want to be in densely populated regions," Daltro said,
citing the Greater Sao Paulo area, where SPX's assets are
concentrated, and other higher density cities such as Belo
Horizonte and Brasilia.
Corporate buildings are also on SPX's radar, which sees
office towers coming back strongly in some key regions, like the
Faria Lima neighboorhod, known as Sao Paulo's financial and
business center, though much less so in other areas.
The demand for such properties "should cool down a little
bit," he said, given currently higher rates and a slowing
Uncertainties about monetary policy in other countries still
cloud the short-term scenario, he said, though outlining a plan
for an investment abroad in the next year.
"At some point next year we will look for something outside
of Brazil," Daltro added, citing the U.S. and British markets.
With interest rates rising quickly in these markets there will
be a lack of capital and opportunities will arise, he said.
($1 = 5.2818 reais)
(Reporting by Paula Arend Laier; Writing by Peter Frontini;
Editing by Kenneth Maxwell)