Rossi Enters Northern Brazil Real Estate JV

Brazilian developer Rossi Residencial has formed a partnership with Amazon region-based builder Construtora Capital. The two will develop a portfolio of projects in Brazil’s north expected to reach about BRL1bn in value. Rossi will structure the project financing and Construtora Capital will be responsible for construction and management. Rossi signed a 1-year BRL200m loan with Bradesco in March, following cancellation of an IPO in February. As the market matures, Brazilian developers are turning to partnerships with regionally based builders to expand into new areas with economies of scale. Last moth Cyrela announced a similar partnership with Redil and Construtora Lider, through which it plans to launch more than BRL1bn in projects in 2008-2009.