Italy's Sorgente launches $1b Brazilian property JV

Italy's Sorgente Group is teaming up with developer Brasilinvest to invest over $1 bn (EUR 782 mln) in the Brazilian real estate market.

As part of the partnership agreement, Sorgente and Brasilinvest will establish two subsidiaries; Sorgente do Brasil Asset Management, which will be responsible for launching real estate funds focused on trophy buildings, and Sorgente Brasilinvest Empreendimentos Imobiliários, which will provide real estate services to the funds.

The joint venture aims to raise initial equity of $500 mln, largely from Brazilian institutional investors but also from the international capital markets. With leverage of up to 50%, the partnership will have a spending power of $1 bn, Sorgente said.

'Sorgente Group intends to offer its investors an opportunity to gain exposure to the Brazilian market which, in our view, is currently benefiting from a well developed political and institutional system and stable economic landscape,' commented Valter Mainetti, CEO of Sorgente Group.

Sorgente operates in the real estate finance sector and currently owns and manages over EUR 3.9 bn of assets globally.

Brasilinvest has delivered over 8 million m² of real estate in Brazil.