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Article: US Institutions Eye Brazilian Real Estate.(United States)
- Article from:
- Investment Dealers' Digest
- Article date:
- April 17, 2006
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Unsatisfied with the low returns in the global real estate markets? Brazil might be the place for you. Buy a fully leased class A office building there, and you can earn 13-15% by just collecting rent, more than double the 5-7% you'd get in the US and easily surpassing the 10-11% in Mexico. But why would anyone go to the trouble when short- term interest rates in the nation are at 16.45%?
Such lofty short-term yields are perhaps one reason why, even as US commercial real estate investors flock to Mexico, India and China, they have largely avoided Brazil. The exceptions have been developers such as Tishman Speyer Properties in New York and Houston-based Hines, ...