PE Funds Ready Brazil Real Estate Push

The pace of private capital deployment for Brazilian real estate appears unhindered by tightening credit conditions and rising aversion to the sector, particularly in developed markets. Three private equity (PE) firms are targeting some $3.8bn in fundraising dedicated to real estate, mostly commercial. PE investor Hines is pressing ahead with plans to raise a new vehicle for Brazil. The fund, apparently targeting $800m, is likely to be closed this year, say people familiar with the firm’s plans. Unlike the past two funds Hines – a real estate-focused shop – has raised for Brazil, the forthcoming vehicle will rely on contributions from a host of new investors, say people away from the process. Previous Hines funds were purely for Calpers, and this fund will tap other sources. Several senior Hines executives were spotted in Sao Paulo last week gauging market conditions. Elsewhere, Tishman Speyer is preparing a follow-up vehicle to its debut $600m fund raised in 2007, say people close to the company. Executives away from the process say the new entity will top $1bn in size. Brascan is also targeting a new $2bn real estate investment vehicle, according to people away from the process.