A Brazilian holding company, backed by the Ermirio de Moraes family, is aiming to grow its U.S. real estate portfolio to the 10-figure mark over the next five years.
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Votorantim SA is ramping up its U.S. real estate push, aiming to deploy $100M to $150M a year to acquire, develop and finance assets through partnerships, the chief investment officer of the family's property arm, Haig Apovian, told Bloomberg. Its goal is to have equal real estate exposure in Brazil and the U.S.
Altre Empreendimentos e Investimentos Imobiliarios SA is focused on deploying capital in completed properties to avoid fluctuating construction costs and the tariff whiplash.
The firm has already spoken with 70 real estate players to set up three partnerships and expects to have another two by the end of the year, Apovian told Bloomberg.
The firm began investing in the U.S. after opening a New York office in 2021 and targeting multifamily and commercial assets amid postpandemic pricing shifts in 2023, Bloomberg reported at the time.
The U.S. market makes up about 20% of Altre's portfolio. It has $200M invested in markets like New York, New Jersey, California, Texas and Colorado, including an interest in Tishman Speyer's 924-unit, 40-story 50 Hudson St. in Jersey City, New Jersey, and a 357-unit rental complex in Chicago’s West Loop, The Real Deal reported.
Neither Votorantim SA nor Altre responded to Bisnow’s request for comment.
The announcement comes amid a backdrop of declining foreign investor interest and shifting policies.
Foreign direct investment in the first quarter fell to its lowest since Q4 2022 at $52.8B, below the quarterly averages of the past 10 and 20 years, Reuters reported.
Areas with a high concentration of foreign investment, like South Florida, are seeing a slowdown in real estate investment, due in part to hardened immigration policies, a teetering trade war and currency fluctuations.
Facing new headwinds, U.S. lawmakers are considering raising taxes on passive income from countries labeled as having “discriminatory” tax systems. The proposal has the potential to chill foreign investment in commercial real estate, Bisnow reported this week.
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