The Brazilian Social Property Fund is investing in the second phase of the Minha Casa, Minha Vida (MCMV) – My House, My Life – programme, of which €52bn comes from the Brazilian government for the phase two alone.
The fund launches at the end of this year and, working with a project developer in Brazil, will initially build 400 units for sale this summer, with a pipeline of a further 1,200 units. All of these units will be pre-sold off-plan and, under the MCMV scheme, the government will have paid for the building work before construction begins.
The Brazilian Social Property Fund is targeting between 20-30% returns per annum, and hopes to return the original investment amount after two years, with any growth in returns after a further 12 months.
The minimum investment is €125,000.
The MCMV programme was launched by the Brazilian government in 2009 with the goal of building there million houses to close the inequality gap and housing deficit of ten million homes in Brazil, mainly by supporting lower class families.
The programme is entirely funded by Brazil’s state bank, Caixa Econômica Federal, the largest financial institution in South America.
Lorenzo Gallucci, managing director of BGB Weston says: “This is not a play on high-end property speculation, but rather an investment that captures the acute demand for housing in a region undergoing extensive economic activity, with the added comfort of being government backed.
