Equity International Bullish Brazil Homebuilders

Chicago-based Equity International, which holds stakes in several Brazilian real estate companies, among them homebuilders Gafisa and Tenda, is interested in increasing its investments in the country. “We want to pour more money into Brazil,” says Ira Chaplik, COO and chief strategic officer, during a Lavca investor roundtable in New York Monday. He explains that while some 7m families in Brazil need affordable, entry-level homes, local homebuilders are only able to deliver half that amount. As the middle class continues to grow, he sees opportunity for homebuilders to increase business. So much so, that he says Equity International, which has $1.2bn in assets under management and tends to make short-term investments, is considering going long term with these types of portfolio companies. “We love Brazil long-term. In the US there is such little demand for real estate due to oversupply, but in Brazil we see the opposite,” Chaplik explains.