Portuguese developer Sonae Sierra is looking to expand in a number of emerging markets in the Mediterranean basin, South America and Asia. ‘We want to continue our international growth, and therefore we need to be more aggressive in the search for opportunities in emerging markets,’ CEO Ferando Guedes de Oliveira told PropertyEU.
Portuguese developer Sonae Sierra is looking to expand in a number of emerging markets in the Mediterranean basin, South America and Asia. ‘We want to continue our international growth, and therefore we need to be more aggressive in the search for opportunities in emerging markets,’ CEO Ferando Guedes de Oliveira told PropertyEU.
‘We entered Colombia in June, and we began providing services in Serbia, Cyprus and Morocco, so as to get a more in-depth knowledge of these markets. We are also attentive to new opportunities in the Mediterranean coast, and we will broaden our knowledge of Asia, by providing development and property management services in China. This market is really worth analyzing. However, we have no commitments beyond the markets where we operate, and any entry in new markets will be prudently analyzed from a long-term perspective, so that the new market contributes to the sustainable growth of Sonae Sierra.’
The new CEO said he was also ‘excited’ about the opportunities in Brazil and other countries in South America such as Colombia, where the company has a partnership with a local developer, as well as Bolivia and Paraguay. ‘Given the long-term growth prospects, the emerging markets in South America could deliver the high returns we’re looking for.’
The expansionist strategy is born out of the recognition that Sonae Sierra’s home markets - in particular Portugal and Spain - are more or less saturated. ‘There may be one or two more opportunities in Portugal, but this is now a mature market. We believe there are still some opportunities in the Spanish market, but we need to wait until the Spanish economy recovers.’ The same is true of Greece and Romania, he added. ‘These markets have also suffered more than other European markets. We haven’t taken any decisions yet, we are still studying the opportunities. If we find the right markets, we should be able to take a decision by the end of the year or in early 2011.’ The company is also looking at Egypt and Israel, he said.
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