By Herbert Lash
NEW YORK (Reuters) - Brazil is on the verge of disproving an old adage that it is perpetually the land of the future, the chief executive of realty investor Equity International said on Wednesday.
Gary Garrabrant said Brazil offers tremendous opportunities, citing the likelihood of an investment grade credit rating sooner than analysts think, low inflation and a growing middle class.
"We're going to be creative in Brazil because we're very bullish on the country," said Garrabrant at the Reuters Latin America Investment Summit. "It's the ideal time to invest in Brazil."
Special finance is an area where Equity International can use its debt investment techniques to an advantage, he said. For example, Garrabrant said it was difficult in Brazil to get a bead on the pricing of housing-related debt.
Brazil will follow Mexico in developing affordable housing and other areas related to real estate, such as special purpose companies for lending, which makes Garrabrant enthusiastic about the country and investment opportunities, he said.
Garrabrant said there will likely be a shake-out in the Brazilian home builder sector. It has 15 public home builders, perhaps double the number the market can bear, he said.
CLUB BRIC
Brazil's anemic growth rates in recent years have led some critics to wonder if the country deserves to be part of the BRIC, an acronym grouping Brazil with fast-growing Russia, India and China. Continued...
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