Brazil’s Votorantim Plans Big U.S. Real Estate Investment Push

Votorantim, one of Brazil’s biggest and oldest business groups, wants to grow its real estate investments in the United States from $200 million to $1 billion over the next five years.

The company, controlled by the Ermirio de Moraes family, started investing in U.S. properties in 2023 through its real estate arm, Altre. Altre currently owns properties in important U.S. markets like New York, New Jersey, California, Texas, Colorado, and Chicago.

These investments make up 20% of Altre’s total real estate portfolio. Votorantim’s goal is to have half of its real estate assets in the U.S. and half in Brazil. Each year, Altre plans to invest between $100 million and $150 million in the U.S.

The company focuses mainly on buying existing buildings instead of building new ones. This approach helps avoid the risk of rising construction costs and delays.

Altre has already bought a stake in the 50 Hudson apartment project in New Jersey and the Union West rental building in Chicago. The company says these types of deals help it find good value, especially when some U.S. property owners need to sell quickly to free up money for other projects.

Latin America’s Wealthy Turn to U.S. Real Estate for Stability

Votorantim is not alone in this strategy. Other wealthy families from Latin America are also putting more money into U.S. real estate. They do this to protect their wealth and find more stable returns than they might get at home.

Votorantim is a large group with businesses in 19 countries, including cement, banking, mining, and energy. The company says investing in U.S. real estate is a smart way to balance its risks and keep its business strong for the future.

Leaders at Votorantim have also said they might look at other countries, such as Canada and those in Europe, for future investments. This move shows how big companies try to protect themselves from ups and downs in their home markets.

By putting more money into U.S. real estate, Votorantim hopes to find steady growth and keep its business secure in the years ahead. All details in this story come from official company statements and reports.