Even has reduced its stake in Melnick to 10 million shares, now holding 4.96% of the company’s total share capital. This move occurs as Melnick’s stock value has dropped 30% this year.
Melnick is a Brazilian real estate development company focused on middle to high-end residential and commercial projects in São Paulo and Porto Alegre.
As a subsidiary of Even Construtora e Incorporadora S.A., Melnick handles all aspects of property development, from land acquisition and project design to construction and sales.
Real Investor, managed by Cesar Paiva, recently increased its equity stake in Melnick to 17.8%. The firm now possesses 36.7 million company shares, marking a significant ownership shift.
Melnick’s recent financial performance has faced difficulties. Flooding in Rio Grande do Sul heavily impacted second-quarter results.
Revenues fell by 42%, reaching R$141 million, due to weaker sales and slower construction progress.
Despite these challenges, Melnick’s indebtedness remains relatively stable with a -15.9% debt-to-equity ratio.
More positive sales and launches were observed in July, hinting at potential improvement in upcoming quarters.
This real estate market turbulence coincides with rising interest rates in Brazil. The Selic rate, Brazil’s basic interest rate, has increased to 9.25% per year.
This change affects various financial instruments, including savings accounts and real estate financing.
The higher Selic rate alters the calculation method for savings returns when it exceeds 8.5%.
This shift could influence investor behavior and potentially impact the real estate market further.
Even’s decision to reduce its Melnick stake reflects the complex dynamics in Brazil’s real estate sector.
As companies navigate these challenges, the industry watches for signs of recovery or further volatility.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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