EI Buys into Brazilian Developer

Equity International, a Chicago-based private equity firm, has acquired a stake in Brazilian property developer Grupo Tha. The deal gives EI, a firm founded by Gary Garrabrant and Sam Zell, 2 seats on the board of Grupo Tha, it says. An official at EI declined to provide any details of the transaction citing a request from the target company. Grupo Tha has developed more than 2,000 real estate projects across a number of sectors, but mostly operates in the Southeastern part of Brazil. EI typically holds on to investments anywhere between 3 to 7 years and invests an average of $75m in target companies. Last year, the private equity firm paid $75m for an undisclosed stake in Terranum Development, a unit of Colombian real estate developer Terranum, and paid another $58m for a participation in Brazilian self-storage company GuardeAqui. The latest venture into the Brazilian real estate development is largely a bet on the growing housing needs of a burgeoning Brazilian middle class, especially in the country’s industrial south, where Grupo Tha has an important presence.