Brazilian mega-project: São Paulo’s US$2.5 billion Parque Global

RIO DE JANEIRO, BRAZIL – The project started ten years ago and was embargoed for environmental issues for half of that time. Five towers with 46 stories each, on a plot of land of more than 200,000 square meters, including a shopping mall, a university, and a hospital in São Paulo City.

Parque Global is a project under construction by the Bueno Netto group in the Morumbi neighborhood, in the southern part of the city of São Paulo, and marketed by the real estate developer Benx. The project has, among its partners, the American giant Related, owned by billionaire Jorge Pérez.

Given its size, it is a project that will not be easily replicated in the medium term in the country’s largest city.

Following the example of JHSF’s Parque Cidade Jardim, the residential apartments will view the Pinheiros River since the towers will be separated from each other due to the size of the land. The project foresees an area of 58,000 square meters with 40 leisure pieces of equipment, most of them open air.

There will be a sort of mini-city, with access for residents to education, shopping, food, and health services, reducing the need to commute to other city regions.

It is a concept that, again, is reminiscent of Parque Cidade Jardim, which has residential towers built on top of the Cidade Jardim shopping center.

US$3.8 MILLION APARTMENTS

Parque Global’s characteristics have, as a whole, generated results in terms of sales and valuation, according to the developers’ evaluation. In 18 months, from the time the first tower was launched on the market, the price of the residential square meter jumped from R$13,000 (US$2,800) to R$19,000.

It is considered a high valuation in a short period, but it has also been experienced in high-standard buildings in other noble regions of the city, such as Moema and Jardins. According to specialists, the pressure of construction material costs and the limited supply of projects in this segment are the reasons.

The first three towers of Parque Global have already been completely sold. The fourth, to be launched in September 2021, is already 80% sold. The apartments cost from R$3 million to R$18 million. The General Sales Value reaches R$11.5 billion, including commercial and residential developments in the complex.

The fact that it is on the other bank of the Pinheiros River, opposite the train line and the business district of Berrini and Chucri Zaidan, does not seem to have reduced the appetite for the project. Bueno Netto and Related have committed to constructing a bridge and a footbridge to facilitate access from Parque Global to the train station across the river. The project foresees an investment of R$100 million for improvements in its surroundings.

CHALLENGES IN THE SECOND STAGE

The development was successful in sales in the residential part. But the second stage, of commercial buildings, reserves more challenges because it will depend on a stronger economic recovery of the country in the medium term.

That is what Luiz Rocha Lima, coordinator of the Real Estate nucleus at USP (University of São Paulo), pointed out. “Currently, the development region has no market for a commercial building. And, consequently, it is difficult to make a hotel feasible, which is in the entrepreneurs’ plan.”

“The Tangará is not performing well. The Four Seasons closed in the pandemic and has not reopened, and all are on the riverbank. The success of these developments will depend a lot on the accessibility they intend to give to the other side of the river,” said the expert.

According to Luciano Amaral, general director of Benx Incorporadora, there is already a pre-contract signed with an operator for the mall and the hospital. “By the end of May, we should sign the definitive contract. About the hotel and the university, we have flagships interested.”

With information from Exame