Low Income Developer Gets Capital Injection

Camargo Correa Desenvolvimento Imobiliario (CCDI), a Bovespa-listed entity, has purchased 25.72% of its low income subsidiary HM Engenharia e Construcoes for BRL72.2m. HM will use the cash injection to boost its activity in purchasing and developing land for houses. HM has a land bank of BRL1bn. The deal, done through a share sale to CCDI, increased the parent’s stake in HM to 76.7%, and gave it an option to buy an additional 4.3% by April 30.