Paladin Realty’s Brazil Team Updates: São Paulo Projects, New Office, and Bright Future in Brazilian Real Estate
Randall Loker, Paladin’s Chief Investment Officer and Chief Sustainability Officer, responsible for developing business strategies and evaluating opportunities for Paladin in its real estate investments throughout Latin America, just returned from a fabulous visit to São Paulo, where he spent the week with our growing team, gaining first-hand insight into the exciting opportunities ahead.
Randall spent nearly a full day touring potential sites for future projects. As mentioned in our recent São Paulo’s Plano Diretor White Paper, the city's new master plan has opened several areas for development, increasing FARs to 9x with the incorporation of affordable housing in the product mix. However, beware of the street markets—sites affected by weekly 'fairs' may face access issues, as well as noise and odors from the famous Portuguese 'bacalhau' (fried cod). Also, watch out for the market's signature drink, 'Caldo de Cana,' a greenish sugarcane juice with a splash of fruit. I took two sips and handed it back to Joao (the brave youngster on the right).
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Randall also spent quality time with our construction guru, Andy Gruber, visiting active project sites and getting a better understanding of the challenges and opportunities. With the post-pandemic boom in launches and sales, it's been tough to find enough manpower to get things built. Thankfully, we've worked through the most complicated issues, and progress is moving forward across the board. The project pictured below, in partnership with IdeaZarvos, is especially impressive, with an iconic facade and triple-height office spaces.
Paladin has officially outgrown its office space in Vila Olímpia and will be moving to a stunning new building in Jardins in Q1 2025. It was great to see the 'before' of the 300-square-meter space, which will be transformed into several large workspaces, three conference rooms, and a café.
In Q4 2024, we begin fundraising for a residential REIT, with the potential to follow up with a healthcare-oriented vehicle next year. Despite a mediocre macro backdrop, the real estate market continues to thrive, with office vacancies low in our target submarkets and residential markets setting records for launches and sales. No doubt, the future is bright for Paladin in Brazil.
This report reflects the opinions of Paladin Realty and does not constitute legal advice. Paladin Realty is not a legal expert. Readers should not rely on the accuracy of the information herein and should consult carefully with their legal counsel to further understand existing and potential rent control laws, ordinances and regulations and should not make investments based on the brief summary of complex laws, ordinances and regulations provided herein. This report does not and will not constitute a part of any offering memorandum and is not intended to constitute investment advice and does not take into account the investment objectives, financial situation, or particular needs of a recipient. Paladin Realty does make any representation or warranty as to the accuracy or completeness of the contents of this report and takes no responsibility for any loss or damage suffered as a result of any omission. The opinions contained in this report are subject to change without notice. The author(s) of this report and Paladin Realty’s research team may participate in investment decisions and receive compensation based upon the performance of Paladin Realty and/or certain of its investment funds.
