Sao Paulo, Brazil, June 18, 2010—IFC,
a member of the World Bank Group, today announced that it will invest up
to $47 million in the low-income housing subsidiary of Brookfield Incorporações
S.A. to increase the availability of high-quality housing for low-income
people in Brazil.
IFC’s investment includes a $30 million long-term revolving line of credit
and up to $17 million in equity, which will represent approximately 10%
of Brookfield subsidiary’s shares. The project is consistent with the
federal government’s Minha Casa Minha Vida program that aims to reduce
the national housing deficit by stimulating the Brazilian construction
industry. This will be IFC’s first investment in Brazil’s housing
“The partnership with IFC supports our strategic expansion to selected
new markets and segments,” said Nicholas Reade, Brookfield’s CEO. “IFC’s
investment will help Brookfield increase the supply of affordable entry-level
lower-income houses in Brazil, helping reduce the country’s housing deficit.”
The rising demand for housing in Brazil, combined with a steady growth
in jobs, is contributing to a healthy homebuilding sector. Brookfield
specializes in an integrated approach to housing development with increased
availability of amenities and community integration, characteristics not
usually available to low-income families. It is estimated that there
is a deficit of 8 million houses in urban areas in Brazil.
Additionally, the housing advancements will contribute to urban infrastructure
development in the area.
IFC will provide local currency long-term revolving credit facility, not
currently available to homebuilders by local banks. To date, IFC has invested
around $40 million to support the growth of Brazil’s housing finance sector,
facilitating access to mortgages for low-income families.
“IFC’s investment in Brookfield’s low-income subsidiary is in line with
our strategy to address the housing needs for low-income people in Brazil.
We look forward to a long-term partnership with a key player committed
to Brazil’s sustainable development and to the promotion of better quality
of life for low-income Brazilians,” said Andrew Gunther, IFC Country Manager
IFC’s strategy in Brazil focuses on promoting access to finance and developing
capital markets to reach low-income individuals, microenterprises, and
small businesses. IFC seeks to strengthen infrastructure and public
services, including health and education, by increasing private sector
participation. Other key areas include improving the investment climate
and helping small businesses join the formal economy. IFC also promotes
socially and environmentally sustainable practices, specifically in the
Amazon region. As of June 2009, IFC’s committed portfolio in Brazil
was $2.2 billion.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About Brookfield Incorporações
Brookfield Incorporações S.A. (Bovespa: BISA3) is the result of the combination
of three strong companies: Brascan Residential Properties S.A., Company
S.A. and MB Engenharia S.A. The company is one of the leading integrated
developers in Brazil’s real estate market, with operations that include
land acquisitions, planning, development, construction of own and third-party
projects, sales, and customer service. For more information, visit