BRAZIL - A Brazilian investment firm claims to have recruited a US$40bn pension plan and a £25.9bn ($52bn) British scheme in its bid to create a Brazil-oriented fund containing of some of the world's 300 largest pension funds.
Andrew Jenner, CEO of Astra Investimentos, said the pension funds would be investing in Brazilian special purpose companies that participated directly in residential real estate projects, in a risk sharing agreement with local builders.
Jenner explained: "The assumption is that they are looking at Brazil for investment diversification anyway. I am trying to optimise their investment by pooling these investors with the same investment objectives [and] governance standards into a single vehicle.
"Places like the US, India and China are far ahead in the curve, meaning that assets there are highly priced and prime buyers are basically taken. In Brazil we are just at the beginning of this curve.
"There are 12 million Brazilians paying rent. They finally have financing available. What is needed now are the residential units for purchase. This is the gap we want to fill."
Pension schemes would invest in the project via a Cayman Islands/Delaware Limited Partnership, said Jenner. The fund will be officially marketed this month.
He added: "Additionally we will also have investment programs with large retailers such as Wal-Mart supporting their expansion plans in Brazil. Through this fund we will offer a package deal under pre negotiated terms."
Founded in 2004 by Jenner, the activities of Astra include real estate and private equity. The company is headquartered in Sao Paulo in Brazil.
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