The idea is to be opportunistic and quickly offer immediate liquidity in the so-called 'trophy assets', scarce and highly demanded properties.
Brazilian bank BTG Pactual plans to triple its real estate investments in Europe to reach US$1.1 billion in the coming years.
The entity, which has almost $6.43 billion in assets under management in Europe, has raised funds in recent years to buy historic hotels in Portugal, where it is also building a portfolio of shopping centers as part of a strategy to renovate and sell them. over a five-year horizon.
BTG's foray into the old continent is part of a strategy that began with wealthy Brazilian clients living abroad and is now targeting other Latin Americans and Europeans in their own territory with private banking services. The company, based in Sao Paulo, has offices in London, Lisbon and Madrid, and is building a bank in Luxembourg after acquiring a credit institution last year.
The idea is to be opportunistic and quickly offer immediate liquidity in so-called 'trophy assets', scarce and highly in-demand properties, according to Bloomberg . BTG already has three real estate funds with a total of US$342.9 million invested in Portugal, which generate returns of between 10% and 20% annually in euros.
The idea is to continue buying properties there and also expand to Spain, initially focusing on logistics. In this market, they have noticed that there is "an enormous flow" of clients from Peru, Colombia, Argentina and Mexico who were heading to Madrid, taking advantage of the tax advantages.
In 2022, BTG purchased the Estoril Eden hotel in Cascais (Portugal). With a total investment of US$128 million, it is being remodeled in collaboration with Portuguese developer Luis Godinho Lopes to include 20 private residences. These units sell for about US$23,578.9 per square meter.
In partnership with Renato Rique, chairman of the board of directors of Rio de Janeiro-based shopping center operator Allos SA, BTG is also supporting shopping centers in Portugal. So far about US$53 million have been invested.
BTG also spent US$160.7 million to acquire the Oitavos, a luxury hotel in Cascais. BTG is remodeling the hotel building and adding 40 private residences connected to it with the help of French architect and designer Philippe Starck.
Globally, BTG manages real estate investments worth US$5,538.8 million, including properties in Brazil, Chile, Mexico and Colombia.
