GoldenTree Invests $216M in Brazil Projects

GoldenTree, a partnership with GoldenTree Asset Management, is based in New York City and has an office in Sao Paulo. Formerly Lindencorp, LDI is a real estate developer based in Brazil that has built more than 450 projects, including high-end residential. Officials with both companies could not be reached for comment.

This is the third equity injection into the country for GoldenTree. The firm invested $100 million into office and residential properties in the same area in September 2007, though with local developers Quality Desenvolvimento Imobillario. Then in June 2008, GoldenTree said in a statement that it increased its investment in this partnership by about $161 million, and added five more developments, including two office developments in São Paulo's Faria Lima district. The first of these, Leopoldo Green, is a 2.2-acre parcel just off of Avenida Faria Lima, upon which the joint venture intends to build a 365,000 square foot world-class office building for $97 million. The second development, on Rua Professor Atílio Innocenti, is a 0.55-acre parcel of land adjacent to JP Morgan Chase's Brazilian headquarters, where the joint venture intends to develop a $29.6 million office building totaling 100,000 square feet.

"With total vacancy rates under 3% in the supply-constrained Faria Lima district, and Class A vacancies under 2%, we are very bullish on the area's long term prospects," said João Teixeira, managing director and head of GoldenTree's Brazil efforts, said in a statement. "The incredible demand for Class A office space in Faria Lima has resulted in office rents that are the highest in Latin America, and these two projects should bring some much needed supply to the district."