The private equity titans behind 3G Capital Inc. and their families are taking advantage of distressed real estate prices in Brazil, where the economy has been battered by Covid-19 and the botched government response.
Firms linked to billionaires Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira are increasing bets on strip malls, office space and long-term rental apartments. The goal is to seize opportunities created by the pandemic in a nation that’s leading the world in daily Covid deaths.
“The next 18 months will be very challenging for commercial real estate and that’s the time to make purchases, because sellers tend to get more flexible on prices,” said Fabio Itikawa, chief financial officer of Sao Carlos Empreendimentos e Participacoes SA, which was created by the 3G founders and is now owned by their heirs.
Brazil is suffering its worst phase of the pandemic, with more than 340,000 dead from the disease and records being broken daily for the number of new cases. Vaccinations are progressing slowly, with only 10% of its 212 million inhabitants having received their first shot and just 2.9% fully immunized, according to data compiled by Bloomberg. The forecast for shipments of new doses was recently cut. The economy is struggling as some activities are in lock-down with rising unemployment and dwindling growth.
