Brazil’s RB Capital, a subsidiary of ORIX Corporation (TSE: 8591: NYSE: IX), and Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group (“Macquarie”) (ASX: MQG: ADR: MQBKY), today announced that they have agreed to an indicative term sheet to jointly form and capitalize a new industrial real estate platform to acquire and develop Class A industrial real estate in Brazil.
The proposed platform would be Macquarie Capital’s and RB Capital’s exclusive vehicle to acquire and develop industrial real estate in Brazil. Initial investment opportunities are being evaluated and anticipated to focus on Sao Paulo, Rio de Janeiro and other core metropolitan regions. The proposed platform would combine Macquarie Capital’s deep institutional investor relationships and proven track record in building real estate operating platforms, with RB Capital’s industrial development and asset management track-record in Brazil.
The proposed platform would be led by the highly experienced industrial real estate specialist Thomaz Camargo. Mr. Camargo has more than 18 years of industrial real estate experience and most recently co-founded and led “Real Estate Development (RED)” since 2010 – a real estate development management and asset management advisory business (no association with ORIX USA subsidiary, RED Capital Group). He has originated over US$750M in industrial real estate projects representing over 1.6M sqm of project area. Prior to co-founding RED, Thomaz held various investment roles with Bracor Investimentos Imobiliarios (Equity International’s Brazil industrial venture), Hines Brasil (focusing in industrial investments) and began his career at CBRE where he was Senior Manager for industrial real estate.
Chris Green, Global Head of Real Estate at Macquarie Capital said: “We are seeing increasing global investor interest in Brazil and in particular industrial real estate investment. Consistent with Macquarie Capital’s global strategy of building industrial real estate operating platforms, we believe the combination of RB Capital’s substantial asset management and operational footprint and Thomaz Camargo’s experience provides the right configuration to ensure origination and execution success.”
CEO of RB Capital, Marcelo Michalua, said: “Given the ongoing fiscal and other reforms, the Brazilian economy is now poised for sustainable economic growth which will drive e-commerce demand in similar ways to what is occurring globally, and that this will in turn drive demand for modern industrial logistics facilities. We believe that Brazil is materially underserved in modern Class A industrial facilities on a global comparative basis. Most of the industrial real estate in Brazil is operator-owned as opposed to investor-owned and this also provides opportunities for sale-leasebacks and other capital solutions for large owners and tenants.”