SAO PAULO, Sept. 27, 2016 /PRNewswire/ -- Vitacon, a leading company in the Brazilian real estate market, is launching the first platform of residential apartments as a source of revenue. Vitacon Properties will initially have 13 development projects with total asset value of R$1.8 Billion. The first building will be delivered in the first quarter of next year. In total, there will be 3,000 residential units within a period from 5 to 36 months. The company's aim is to achieve annual revenue 12T above average cost, + IGPM tax.
"Our properties are in the capital's so-called zero zone, a region where major offices are concentrated, such as Paulista, Jardins, Vila Olimpia and Itaim" – explains Vitacon CEO, Alexandre Lafer Frankel.
According to Frankel, with the new business model proposed by Vitacon it will be possible to invest money and have a return from a number of buildings located in Sao Paulo's most distinguished neighborhoods. "It's a new way to invest in buildings. A way that's updated so it's in tune with the behavioral profile of the investor who no longer wishes to immobilize part of his wealth in an asset," he notes.
Confidence in the Brazilian economy
Vitacon Properties is emerging at a time of enthusiasm about Brazil's economy. It's undeniable that the new government has modified expectations considerably with regard to the future of the country, while it's also true that the mood of the business community and consumers has improved substantially. After reaching an unbelievable 14.25% per year, Brazil's future interest rate is beginning to indicate a sharp decline. The country's principal advisers estimate a level below 10% per year by the end of 2017, and even 12.5% while still in 2016.
But the most important thing is that there are a number of factors underpinning this recovery. One of them is that the external environment that has again begun to pay attention to Brazil, seeking more attractive investments at the low rates offered by global markets. Another decisive indicator is the so-called Brazil Risk, measured by CDS (Credit Default Swap), observed to be at its lowest since June of 2015. The Risk is at the level of 250 points. During the same period last year, the level reached 539.40 basis points.
+55 11 3588.4700
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vitacon-launches-unprecedented-platform-of-residential-apartments-as-a-revenue-source-300334715.html