Brazil

Prolifico’s partners chose to invest in Brazil because of a shared view of the country’s unique ability to face the challenges of the future.

The issues Brazil faces such as improving productivity seem eminently surmountable, especially when compared to issues such as water scarcity, over-population and terrorism faced by many other countries today. Brazil is a self-sufficient country whose renewable water resources (greater than Russia and Canada combined) the world seems increasingly dependent upon to feed itself.

Brazil has powerful fundamental growth drivers, including an abundance of natural resources, a stable democracy and strong demographics. It has the world’s 5th largest population, with a median age of 29 and a low unemployment rate. Half of the population is considered middle class as defined by the World Bank.

Brazil is forecast to become the fifth largest economy in the world by 2023, overtaking both the UK and Germany (CEBR’s World Economic League Table).

Infrastructure improvements are underway including ports, railways, roads and airports across the country, supporting improved medium term GDP growth. While 2014 saw the passing of new legislation tackling corruption and a commitment to spend 75% of all future oil royalties on education and healthcare.

Cooling in China looks likely to direct investor attention to Brazil as the alternative EM market with suitable potential for scale, coupled with its positive fundamentals.

Prolifico believes that for many years to come a constant flow of acquisition opportunities will present themselves in the commercial real estate space, particularly medium sized assets in up-and-coming areas that are well suited to Prolifico’s alternative real estate strategies and core operating business models. These assets and areas are far less susceptible to the inherent cyclical nature of the more mainstream real estate sectors, assets and areas.