EI Lodges into Brazil Logistics

Chicago-based Equity International has deployed $100m to help capitalize private Brazilian logistics company AGV Logistica. The move is the investment company’s first foray into the logistics sector. Equity Internatioanl has had a successful LatAm track record with private investments in Gafisa, BRMalls and Homex, all of which are now public and have become leaders in their respective sub-sectors. AGV, established in 1999, has 30 facilities in 11 states in Brazil. “AGV represents a strategic extension of our investment portfolio in Brazil,” said Gary Garrabrant, CEO of Equity International. The deal follows successful ventures in the logistics sector by real estate private equity firms such as Hines, which owns and operates three units in Sao Paulo. As Brazil’s economy expands, the need for the transportation and storage of goods and consumer products increases and with it, the need for logistics centers. Many of Brazil’s logistics facilities are old, or outdated, says one investor eyeing the space. That makes the sub-sector a compelling option for real estate investors to diversify their product and regional strategies.