GoldenTree InSite Partners, Yuny Incorporadora Announce R$300MM Joint Venture
Extension and Five New Deals Representing Over R$1.0Bn in Total Potential
Sales Proceeds ('VGV')
NEW YORK, June 2 /PRNewswire/ -- GoldenTree InSite Partners and Yuny
Incorporadora (formerly Quality Desenvolvimento Imobiliario) announced an
R$300MM extension to their existing joint venture, bringing GTIS's total
equity commitment to the joint venture to R$500MM.
In addition to the extension, the joint venture announced five additional
development projects today as part of the strategic alliance to invest in
Brazilian real estate. These deals bring the total number of projects the
joint venture has closed on to eight, which all together are targeted to
generate total sales proceeds in excess of R$1.2Bn.
The first two projects are office developments in Sao Paulo's Faria Lima
district, the premier commercial district in the country. The first of these,
Leopoldo Green, is a 2.25-acre parcel located just off of Avenida Faria Lima,
upon which the joint venture intends to build a 365,000 square foot
world-class office building. At a total development cost of approximately
R$180MM, this development represents the largest investment of the joint
venture and the largest of the twelve Brazilian equity investments GTIS has
made to date. The second development, located on Rua Professor Atilio
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 R$55MM
Class A office building totaling approximately 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 Joao Teixeira, Managing Director and head of
GoldenTree InSite Partners' Brazil efforts. He added: "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."
The third project is a R$47MM, 26-story residential condominium
development located in the Vila Romana neighborhood of Sao Paulo's highly
desirable west side. With good access to public transportation and major
arterial roads, as well as excellent shopping options, the condominiums will
be designed to appeal to buyers from Brazil's growing middle class and will be
more affordable than similar developments in the surrounding Alto de
Pinheiros, Perdizes, Sumare or Alto da Lapa neighborhoods, where prices are
20-40% higher. Designed by the noted Brazilian architecture firm of
Konigsberger Vannucchi, the development will offer buyers excellent relative
value in an area of the city that is rapidly increasing in popularity.
The fourth announced project, a 394-unit residential condominium
development called The Gift, is located in the Chacara Santo Antonio
neighborhood of Sao Paulo's southern zone. The development is located
directly south of the Brooklin and Berrini neighborhoods, providing easy
access to some of the city's most important commercial districts. The project
is being co-developed by Yuny and Even Construtora and had already been
substantially presold and begun construction by the time GTIS closed on the
investment.
The fifth announced development site is located two blocks away from
Ibirapuera Park, a 450-acre urban park popular with residents for its many
jogging trails and open spaces, lying in close proximity to another
development site acquired by the joint venture in October 2007. Combined,
these sites give the joint venture two prime development parcels in Sao
Paulo's Paraiso neighborhood, one of the city's most prestigious and
high-profile addresses. The R$60MM development's park views and high-end
finishes will appeal to the city's more affluent condominium buyers, and its
full floor units will afford its residents with a degree of privacy not
usually found in condominium living.
"These five deals, representing developments designed to appeal to both
middle-income and more affluent condominium buyers, as well as two office
developments in Sao Paulo's preeminent commercial district, speak to both the
quality and diversity of the joint venture's growing development portfolio,"
noted Josh Pristaw, Managing Director of GoldenTree InSite Partners.
"All of these deals, but particularly Leopoldo Green, are great examples
of the type of larger, higher-profile deals that Yuny has been able to pursue
as a result of our joint venture with GoldenTree InSite Partners," added
Marcos Mariz de Oliveira Yunes, co-CEO of Yuny. He continued: "Since we
announced our strategic alliance in September of last year we have committed
over R$350MM in equity to our joint venture, leading to the extension
announced today. We have closed on eight deals together thus far and are
evaluating numerous additional opportunities -- a testament to the strength of
the relationship that has developed between our two firms."
Commenting on the announced deals, Tom Shapiro, President of GoldenTree
InSite Partners, stated, "Yuny has displayed a remarkable talent for
identifying and negotiating the purchase of complex land assemblages, as well
as for skillfully navigating an often intricate approvals process. We are
extremely pleased with the results of our joint venture thus far, and look
forward to continued success together as we expand our efforts in Brazil."
ABOUT GOLDENTREE INSITE PARTNERS
GoldenTree InSite Partners has 27 employees and currently manages
approximately $1 billion of committed equity. The firm pursues opportunistic
real estate investments through both equity investments and mezzanine lending
activities. Since inception, the company has committed capital to
residential, retail, industrial, office, hotel and mixed-use projects. The
firm's principals have over 80 years of investment, management and operations
experience, which spans all major property types and geographies. By
combining hands-on real estate expertise with a disciplined investment
approach, GoldenTree InSite Partners creates value for its investors and
partners. GoldenTree Asset Management, with offices in New York, London, Los
Angeles, Chicago, Dallas and Luxembourg, manages a variety of absolute return
strategies, which invest in bank debt, high yield bonds, distressed debt,
middle market loans, equities and real estate and employs over 190 people.
GoldenTree manages approximately $13.6 billion as of May 1, 2008, of which
$9.6 billion are absolute return assets. For more information on GoldenTree
InSite Partners, please visit the company's website at
www.goldentreeinsite.com.
ABOUT YUNY INCORPORADORA
Yuny Incorporadora, which until September, 2007 was known as Quality
Desenvolvimento Imobiliario, is among the fastest growing real estate
development firms in Brazil. Yuny was initially established in 1996 as a real
estate investment company focused on commercial and luxury residential
properties in Sao Paulo. In 2006, the company began an impressive expansion
process, building up a professional team and becoming an active market player.
To date, Yuny has developed 19 projects totaling over 5,350,000 square feet
with total sales of over R$1.5 billion. Yuny's expertise in identifying and
structuring land purchases, project management, sales and marketing have
allowed it to grow constantly over the last 11 years and should rank the
company among the top 20 Brazilian real estate development companies in 2008.
For more information on Yuny Incorporadora, please visit the company's website
at www.yuny.com.br.
SOURCE GoldenTree InSite Partners
John Henderson of Rubenstein Associates, Inc. for GoldenTree InSite Partners,
+1-212-843-8054
