Gafisa Gets Urban

Brazilian property developer and construction company Gafisa has agreed to buy 100% of AlphaVille Urbanismo, the largest community development company in Brazil to consolidate its position as the country’s largest homebuilder. AlphaVille will operate as a subsidiary of Gafisa and will allow it to reach new local markets. Gafisa will initially acquire 60% of AlphaVille’s shares for $93 million and will buy the remaining 40% stake over the next five years. The implied valuation of AlphaVille at the acquisition price is $177 million.