Comunication / Adit News - ADIT Brasil - Association for Real Estate and Tourism Development of Brazil

Comunication / Adit News

july 27, 2010

Interview with the Association for Real Estate and Tourism Development (ADIT) Brasil

Please see an interview with Danilo Canuto – Executive Director at the Association for Real Estate and Tourism Development (ADIT) – an increasingly important organisation serving the needs of investors and business people in Brazil. We talk about the history of the organisation, their recent announcement to expand in Brazil, the future of the Brazilian market, areas of Brazil with interesting property investment prospects, minimising risks amongst other topics.

Can you give our readers an outline of ADIT’s history? In June 2006, the Association for Real Estate and Tourism Development in the Northeast Brazil – ADIT – was born. The association was created out of the fact that there was also no official body to represent the real estate or tourism invest- ment market in the region. There was a clear lack of opportunities for investors to meet and do business which meant that activity was very slow. To fill this gap a group of businessmen, led by Felipe Cavalcante, got together to promote in March 2006 the first Nordeste Invest in Maceio, Alagoas. Representatives from more than 300 national and international companies gathered to define strategies for the region. The event has become a milestone in the market, with five successful events organised annually since that date.

Where do your main interests lie? The main focus lies in Brazilian real estate projects (residential, logistics, shopping malls, corporate buildings, to name a few) and tourism projects (hotels and resorts).

Can you talk through the future role of ADIT in the Brazilian market place? The role of ADIT Brazil is to form partnerships and to attract foreign capital for new ventures by bringing together investors who wish to operate in the region. ADIT Brazil will now aim at attracting foreign investment in earmarked urban land facilitating residential and also commercial property-based investments, hospitality, real estate tourism and logistics. It will also strengthen its presence with the aim of creating legal security to advance real estate and tourism developments across the country. The idea is that ADIT Brazil is the official gateway into Brazil for foreign investors who are interested in real estate and tourism opportunities. ADIT Brazil is also a one stop shop where investors will find everything they need in order to be able to invest in the country. The association engages all of those who work with the entire productive chain, including hotels, real estate developers, construction companies, law offices, architects, consultants and financial institutions, thus, establishing a link between Brazilian companies and the rest of the world. This way, ADIT Brazil provides guidance and helps Brazilian and foreign investors achieve secure and profitable business.

You recently announced your intention to extend your reach to beyond the north east of Brazil – why was this decision made? To give a few reasons:

• Due to the positive economic scenario and increasing interest from investors from all over the world looking into various parts of what is a huge country;

• Due to the fact that ADIT is already recognized as a gateway into Brazil by several investors from abroad who want to expand to other regions of the country;

• Brazilian companies and businessmen looking to explore interesting opportunities in various regions in Brazil have been contacting us;

• Federal Government bodies, who fund most of our promotional efforts and missions (including APEX Brazil and Embratur), encouraged us to broaden the scope of the organisation.

In terms, of location – where do you believe there is huge growth potential? There are some $50bn worth of projects being planned in 12 different cities (Belo Horizonte, Brasília, Cuiabá, Curitiba, Fortaleza, Manaus, Natal, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo) in the lead up to the 2014 FIFA World Cup and the 2016 Olympics. These plans include upgrading of airports and ports as well as a high-speed train between Brazil’s largest cities, Rio de Janeiro and São Paulo, which should be ready in time for the 2016 Olympics. The current housing deficit in Natal is approximately 130,000 units. But with the Federal Government investing R$ 34 billion in the country for accessible housing through the “Minha Casa, Minha Vida” Natal’s property market is growing fast.

What are the main due diligence steps a foreign investor should be taking when analysing a potential real estate project in Brazil? (Question answered by Luiz Lessa CIO of ADIT’s Investment Agency). First thing a foreign investor should do is hire a real estate specialized law firm. In Brazil, laws can differ from state to state and a suitably qualified professional will be able to assist with the right kinds of decisions. In general, other things that need to be checked are related future taxation obligations, overall title availability, environmental restrictions and any legal compliance from previous owners that might interfere on project development.

How risks can be minimised / and returns maximised when investing in Brazil? We usually recommend that foreign investors partner up with local companies in order to reduce the learning curve and consequently reduce risks whilst maximising profit; we play a decisive role in presenting foreign investors to serious local groups and companies as well as assisting the process.

Do you envisage any notable effects of the impending change of government on the real estate market? We don´t foresee any significant modification that might take place and affect negatively the real estate market due to a possible government change in October. There is no turning back for Brazil and, irrespective of who is going to be in office, policies regarding real estate development will keep stimulating growth. We shouldn’t forget that the 2014 FIFA World CUP and the 2016 Olympics also play an important role in stimulating investments in the real estate market.

As part of their wider presence in Brazil, representatives from ADIT will be showcasing a range of quality real estate investments on 5th August 2010 in Florianópolis, Santa Catarina. To receive a formal invitation to the event, please contact Tideway Communications, ADIT’s UK representative, via Kerry@tidewaycommunications.com or Antonia@tidewaycommunications.com.

Fonte: Brazil Investment Guide

[+] More News