Cookies on the Investment International website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.

New to Investment International?

Welcome, and thank you for visiting our website.

Investment International is the leading publication for investors interested in the world of international investment.

Our aim is to give you intelligent commentary on the most important financial stories, and help you to profit from them. If you've enjoyed what you've read so far why not sign up for our FREE investment alert.

Every week the Investment International team sends out a hard-hitting newsletter packed with news and analysis of the top stories this week plus the best investment opportunities on the market. We always look at the bigger picture like the Eurozone Crisis, and explain how this will affect YOUR investments.

Ask me later
No thanks

Brazil property investment fund launched PDF Print E-mail
News - Funds
Tuesday, 26 April 2011 11:31

A property investment fund for real estate in Brazil that allows investors to take advantage of the boom in building and home owning has been launched.

‘At the end of 2010, more than 9.1 million Brazilian families announced their intention to purchase a new home within the next year. Brazil cannot keep up with this demand and has a current deficit of six to seven million homes that experts say will take ten to 15 years to meet. uv10’s Property Fund takes advantage of this deficit and provides experienced, asset rich developers with the finance they need in exchange for massive returns,’ said Samantha Gore, sales manager at uv10.

‘The vast majority of Brazilians could once only dream of becoming a homeowner, but now with a sharp rise in credit, increased incomes, a vastly reduced unemployment rate of just 6.7% and the purchase terms offered under the Minha Casa Minha Vida programme, that’s all changed,’ she explained.

‘Literally millions of Brazilians are now eligible for property purchasing and have made it their main short term goal. The problem they have is that availability is chronically low. Importantly, this demand comes from consumers, not speculators,’ she added.

The legal minimum entry level is €100,000. The Fund is closed ended and will run for three years.
The northeast of Brazil, where the uv10 Property Fund will be focussing the bulk of its efforts, is currently playing catch up to the rest of the country having been historically far poorer and suffering over 50% of the national housing shortage, some four million homes. According to Gore this region is enjoying a proportionally faster growth rate than elsewhere, with average salaries in Rio Grande do Norte increasing by 77% from 2002 to 2009 alone.

‘Serious developers operating in Brazil’s key markets, in particular the northeast, do not have access to or prefer not to use traditional forms of funding available in Brazil as they are both expensive and heavily bureaucratic,’ said Gore.

‘By working with the uv10 Property Fund, these carefully selected, successful, hungry and reliable developers can turn around their construction projects very quickly and reinvest the capital early into the next opportunity, rewarding Fund investors as they do so,’ she added.

Introduced in 2008, Minha Casa Minha Vida attracted an initial Government investment of 64 billion Reais (€28 billion) and will see the completion of one million new homes by the end of 2011.  Phase two has now been approved with a further 72 billion Reais (€31.5 billion) pledged to the programme between 2011 to 2014, funding the construction and purchase of a further two million homes.
It operates through a subsidy to buyers and developers, reduced mortgage rates, lower taxes and other legal expenses as well as a workers’ guarantee fund to mitigate delinquency risk for the banks involved. In February 2011 the Government raised the maximum value of houses eligible for the program from 100,000 Reais (€43,700) to 150,000 Reais (€65,500) in order to further reduce the deficit, although these figures vary region by region.
‘Entry level for investments in this lucrative sector tends to be prohibitively high for individual investors and comes with some challenging bureaucracy and the need for high levels of expertise.  The uv10 Property Fund is designed to bridge this gap for foreign investors, offering them an opportunity for exposure to this growth area within an independently administered Fund,’ said Gore.

The Fund is targeting a minimum return on investment of 119%, after fees and expenses, at the end of a fixed three year investment period and values are accurately reported to investors as the Fund is legally obliged to file annual audited accounts. Risk is spread over a number of projects and a professional team with a solid track record in Brazilian real estate and development is in place to manage all decisions.  Although past performance can never guarantee future success, uv10 said it is confident of being able to achieve its objectives within this Fund and surpass investor expectations.



Most Read

Latest Guides

The Most Iconic Residential Address in Liverpool
Hever Hotel
Student Property Guide
Hever Hotel
Self Invested Personal Pension Guide for UK Expatriates
Welcome to Hever Hotel
Hever Hotel
Discover the real power behind your pension
Hever Hotel
St. Kitts & Nevis: Emerging luxury destination
St.Kitts Property Guide 2011
Agricultural Investment Report
St.Kitts Property Guide 2011
Currency Guide
Currency Expectations Report 2010-2011
Offshore Banking Guide
Offshore banking Guide 2010-2011
Pension Planning Guide
International Pension Planning Guide 2010-2011
Caribbean:Buying Guide
St.Kitts Property Guide 2011
Eurozone Crisis
Eurozone Crisis Report 2010-2011
Tax Guide
International Tax Guide 2010-2011
Follow us on Twitter
Find us on Facebook