RIO DE JANEIRO, BRAZIL – Emgea (Asset Management Company), a state-owned company founded in 2001 to manage the Caixa Econômica (Federal Savings Bank) stock of stressed assets, is conducting the direct sale of around 400 properties at up to 70 percent discount as of Thursday, October 29th.
There are apartments, buildings, houses and commercial rooms repossessed from the recovery of credits acquired from the bank, spread throughout all regions of Brazil. Half of them are located in the Southeast region, 20 percent in the Northeast, 18 percent in the South and one percent in the North. Among them, 48 percent are residential apartments, 37 percent are houses, ten percent are commercial properties and five percent are land.
Discounts are higher in the case of occupied properties, those which have been for sale longer and with a low sales value. On average, properties are 45 percent below market value. A two bedroom residential apartment in Salvador, at a discount of 55 percent, can be purchased for R$69,600. An apartment in Praia da Enseada, in Guarujá, São Paulo, costs R$1,3 million with a 12 percent discount.
Engea was forced to sell the properties, which previously belonged to Caixa, in its new management as part of the company’s privatization process. To begin offering the properties online the company partnered with Resale Startup. The company, founded in 2015, develops solutions for the management and sale of real estate that is returned to the market by financial institutions.
For Vinicius Mazza, Emgea’s CEO, the website is a channel that democratizes a little-applied and very time-consuming practice, which is the direct sale of state-owned properties.
In addition to the direct sale through Emgea’s website, the properties can be purchased through the brokers of real estate agents accredited by Resale.