Paladin Realty, Altana Partner Again on $60M M-F JV in Brazil

By Barbra Murray, Contributing Editor 

Institutional real estate fund manager Paladin Realty Partners L.L.C. continues to answer the cry for multi-family housing accommodations in Brazil, with the closing of an investment in a homebuilding partnership with Construtora Altana. Through the $60 million joint venture, A-PIMA II, the partners envision building approximately 2,400 condominium units for low- and lower/middle-income buyers in São Paulo. 

Paladin financed its investment in A-PIMA II through its fourth Latin America-focused institutional fund, which recently attracted a $100 million commitment from the board of the Overseas Private Investment Corp. 

The partners have already gotten the green light for the fund’s first project. There’s every reason not to dawdle. “Growth in demand for low- and middle-income housing is far outpacing pace of new supply,” Fred Gortner, a managing director with Paladin, told Commercial Property Executive. “As a result, the housing deficit in the country is growing, not shrinking.”

A-PIMA II marks the second go-round for Paladin and Altana. The two companies first joined forces in 2009 on the inaugural A-PIMA platform, which yielded 3,171 low- and lower/middle-income units in eight residential projects, including La Dolce Vita (pictured), and revenue totaling in excess of $250 million.

Paladin and Altana anticipate generating roughly $250 million in sales through A-PIMA II as well, despite the growing number of multi-family development activity in the area. It’s all about demand.

“Demographic trends supporting strong housing fundamentals–most notably, a declining dependency ratio as their ‘baby boomers’ continue to enter  the workforce–will last for another decade,” Gortner said.

And it’s not just São Paulo that’s on Paladin’s radar. “Brazil has over two dozen cities with populations of over one million people [and] Paladin has been active in over a half dozen of these markets,” he added. “All are ripe for housing development.”

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