Investment opportunity in Natal 200hectare parcel near new airport for landbanking/subdivision

Urban Expansion Area

- The best opportunity to invest in Brasil, without risk and with certain profits, is in urban expansion land.

- Land values in urban expansion areas are increasing rapidly.

- We are focusing on areas close to Natal city and close to the new airport in construction at São Gonçalo do Amarante, and Macaíba, where the ZPE (Zona de Processamento de Exportação) is to be formed. This is a Tax Free Zone to encourage exporters of Brazilian merchandise.

Why Macaíba?

Macaiba is a town of 69.000 people close to Natal, on the main BR101 north-south highway. It is close to the new airport and was chosen to benefit from the placing of the ZPE in its boundaries.

200 hectares land.Next to the ZPE

• Currently zoned as rural land, and to be redesignated as urban land in the very near future.
• Owner is asking the current price for rural land- at R$7.00 per m2.
• Once re-zoned the land will be worth at least double and most likely three or more times the current price.
• Why? Land in the area is selling for between 15 and 30 R$ per m2 This particular land is placed right next to the ZPE, and will be a strategic asset in the coming years, with high demand for housing, industry and commerce. For this reason we are certain that it will produce a superb profit doing nothing, and spectacular profit if a project is produced for “loteamento” for housing and/or for sale for factories, warehousing etc

 Payment plan 

• The owner has authorized us to negotiate exclusively on his behalf.
• He is very flexible in what he wants in payment terms.
• Payment in installments- deposit of 5 million reais (presently 2.75R$=£1 or 2.40 R$ = 1 euro), with balance of R$ 9 million paid over a period of 2-3 years, or in “permuta” which means that a developer pays the balance in value of finished land plots, or other property to the value of the “permuta”.
• Seller will need to see his return is safe so depending on the profile of the buyer, he will adapt payment terms to suit both parties.

Investor Profile

• The buyer could be a wealthy individual or company with vision to see the quality of this opportunity for investment.
• Developers who have experience in producing large project.
• Hedge Funds or Managed Investment funds, who work with their clients for maximum profit.

What help is available?

• The buyer may require assistance for a number of reasons, perhaps not experienced in Brasil, but wants to invest in one of the world’s strongest economies.
• We have a group of people who can handle all aspects of the development from planning projects of mixed use, through to obtaining all licenses and approvals to enable the full profit potential to be realized.
• We also have direct access to the Town Hall and to the important political people to smooth the process, with input from the Town Hall collaborating to produce the ideal mix of uses that will benefit the growth of Macaíba in the coming years, producing new jobs, homes and industrial growth.
• The buyer will be able to use the marketing skills we have available to implement infrastructure plans and then to market house building plots, industrial and warehousing plots etc.

How best to invest

• There are a number of ways that an investor could use.
• The simplest for an overseas investor is to open a new Brasilian company in which the funds to buy the land are loaned under contract to the company with the asset being charged as security.
• We can assist in administiring the company to ensure all the legal requirements are followed, collaborate with the Town hall, architects, etc, to produce a plan that will be acceptable, and produce the returns anticipated.
• Alternatively a wealthy investor may wish just to land bank the asset for future sale of all or parts. This can be arranged in a company or as a private individual.

Example of loteamento

Say 50 hectares is allocated for housing in a first phase. This would produce an estimated 1200 plot units for popular houses.

• Cost of infrastructure estimated at R$5000 each plot to provide roads, water and electricity to each plot.
• Cost of land plus infrastructure per plot R$ 8000.
• Sales price of plots could be priced 15000 – 20000 R$. (Plots with infrastructure in other expansion areas of Macaiba and Parnamirim are 20000-30000R$ each).
• Estimated gross profit for 1200 plots between 8.4 million and 14.4 million reais(conservative investment.
  

Exit Strategies

• Re-Sale of all or part of asset after re-zoning as urban land (estimated value minimum 15R$ per m2 to up to 25R$ per m2.).
• Produce projects with Town Hall input and sell phases with Planning consents in place for loteamento for houses and for industrial area projects.
• Invest the infrastructure cash for a phase of house building plots and we can market blocks of plots to local housebuilding companies.
• Invest in building the homes and realise additional profit of around R$25-30000 per house. This can also be managed with our builder contacts.
•  A mix of the above options could also work.

This 200 hectare parcel is just one of several we are currently offering.Please consult this post on other land options in the immediate area;http://brazilbeachhouse-wwwbrazbeachhousecom.blogspot.com/2011/10/25-large-urban-areas-for-subdivision.html



Mike Smith
Real Estate Professional in Brazil
License number;3125
http://www.facebook.com/pages/Brazil-Beach-House/126654720715275

Tel;      NATAL,BRAZIL
Office  ; 0055 84 3225 2108
Cellular; 0055 84 8807 5651
SKYPE   ; mikebrazilbeachhouse

E-mail ; mike@brazbeachhouse.com
Website; www.brazbeachhouse.com