MaxCap and Merrill Lynch's relationship began in 2006 and have already made more than $135 million in real estate investments in Brazil. "The joint venture will enable us to build a leading investment platform in Brazil," José Paim de Andrade Jr., MacCap's founder and CEO, tells GlobeSt.com, adding that he expects to increase it "substantially" over the next few years. Paim says that due to a "quiet period," he cannot divulge how much total capital is in the investment vehicle.

He explains that the joint venture looks to invest in areas such as residential development, retail, the commercial sector, as well as residential companies. He also explains that the partnership already has investments in seven cities throughout Brazil, and are not looking to invest in any geographic region in particular. "We have more of a national focus," he says.

The joint venture's current portfolio includes an ownership stake in Ecoesfera, a residential developer of environmentally sustainable homes, with whom they are developing 15 projects. Two of Ecoesfera's most recent development projects are precertified as LEED by the USGBC. The partnership also holds a stake in MaxCasa, a residential developer, with whom they are currently developing eight projects, branded as MaxHaus. MaxHaus apartments are 70 square meters delivered in an open format, which allows purchasers to tailor their apartment into one, two or three bedrooms based on their own design. The company offers an affordable product that is flexible and contemporary.

Paim tells GlobeSt.com that the partnership combines the local expertise and relationships possessed by MaxCap, and the financial backing of Merrill Lynch. "Our company is a traditional company in Brazil in terms of real estate investment," he says. "Partnering with Merrill Lynch helps us have faster and better access to more capital."

Paim explains that there are many different factors in Brazil that put it in an attractive position. "There are more than 200 million inhabitants in the country and interest rates are declining," he tells GlobeSt.com. "Also, there is a huge emergence in middle class, which creates huge opportunity for housing." He says that the residential market as well as real estate investment "is booming here," which has been able to attract global interest.

Payton Mayes, head of Merrill Lynch Global Principal Investments in Latin America, says in a prepared release that the partnership will provide the firm with the opportunity to "acquire and develop a strong portfolio of high quality assets throughout Brazil."

Mark Patterson, head of Merrill Lynch's Global Commercial Real Estate business, says in a prepared statement that "this initiative is another sign of Merrill Lynch's commitment to expand its long-standing presence in Brazil and is consistent with our decision to deploy the firm's capital in the region." Merrill Lynch's overall Brazilian operations have achieved double-digit revenue growth in the last two years. Merrill Lynch could not provide GlobeSt.com with further comment by deadline.