English fund brings US$ 654.2 million to invest in Brazil
Valor Econômico
British real estate investment fund manager Squarestone landed in Brazil in 2008 with its pocket filled with money. The company has nothing less than 400 million pounds (US$ 654.2 million) to invest in the construction of new shopping malls in the country and it is negotiating the acquisition of at least eight undertakings in the initial stage of the works.
From the total Squarestone has to invest, only 20% is already committed. Besides purchasing the Bonsucesso Shopping Mall, in Guarulhos (SP), in 2008, the British fund is building the Golden Square Shopping Mall in São Bernardo do Campo (SP) and the Complexo Canoas, in the Metropolitan Area of Porto Alegre (RS). "We want to build the Squarestone brand in Brazil. We are looking for opportunities of investments in other emerging countries, but we decided that Brazil would be the first one", affirms British James Morse, one of the shareholders of Squarestone, which was founded in 2003.
The purpose of Squarestone is to be a brand like Multiplan or Iguatemi in the Brazilian market. "The Brazilian market of shopping malls started heating up again. The hunger (for acquisitions) is back", affirms Politi, Squarestone's partner in Brazil. The projects are now in different stages of maturity and in different regions of the country, like the Northeast, Rio Grande do Sul and São Paulo. In some cases, the construction of the shopping mall has already started, but the controllers are short of cash to finish the works. In other projects, there is only the land, affirms Politi.
In Brazil, Squarestone is interested in projects of construction from zero ("Greenfield") or in the initial stage of works. The return on the invested capital of these undertakings is always greater than that obtained with the acquisitions of commercial centers that are already in operation. Squarestone is bringing the country some of its partners in Europe, such as British Architecture Office Chapman Taylor, specialized in malls, and Coverpoint, a consulting company specialized in food squares. The Golden Square Shopping Mall, to be opened in 2010, will feature four anchor stores.