Plata Capital will screen various real estate opportunities, but our mission is to invest just in a few and very well designed projects. We will commit proprietary capital and may count with Limited Partners at each specific case.
Our investment structure is very flexible, we may have land owners in the projects, local developers and also local investors with proven network Mostly our investments will be based on potential arbitrage opportunities such as change of use, income segment improvement, project combinations, distress asset, tenant rate-up, M&A and spin off.
Plata Capital´s Team developed more than R$ 400Mn in BTS projects in the last 2 years, having delivered several types of assets including corporate headquarters, distribution centers and industrial plants.
Linking its strong financial capabilities and its local real estate expertise, Plata Capital presents flexibility and client focused approach to deliver differentiated and innovative solutions to its clients. A recent example of our approach is the successful development of a company headquarters by retrofitting and adapting an abandoned building in Sao Paulo's greater area.
The Brazilian market presents significant potential for Sale and Leaseback operations following the growing professionalization and capital efficiency focus of local companies. In this context, the companies are increasingly searching to generate working capital by selling and leasing back its real estate assets.
The complexity in this kind of project is to generate profit for both, sell side and buy side. So we usually look for potential opportunities for future expansions and/or maximize the use of the property.
The fast growth moment in Brazil reduces/eliminates the obvious real estate opportunities. Mainly in São Paulo and Rio de Janeiro, cities that are responsible for over 17% of Brazilian GDP, the projects are very expensive and generally the profitability for investor is under our expectation.
So we focus in the redevelopment of projects already built but with a great potential to maximize its value in the short term. To capture them we usually search for projects in obvious neighborhood, trying to match another type of use or potential tenants.
Our new developments will always look for new concepts, adding value my mixing uses and also by bringing high quality tenants.
The Real Estate Market in Brasil is still in its early stage, we are introducing new concepts and alternative financing tools. Our financial approach with deep real estate knowledge improves our ability to balance risk and return and protect our cash exposure.
The experience in the Real Estate sector enables Plata´s Team to structure alternatives for project design, construction, funding and tenants that will differentiate the project and add value for project´s investors.