Patria Investimentos Ltda and its partner, the Blackstone Group have entered into an agreement to purchase 70% shareholdings in Alphaville Urbanismo residential-development business owned by Gafisa SA. The purchase price for the stake is at 1.4 billion reais or US$651 million.
With the transaction, Alphaville is now valued at 2 billion reais according to a statement of Gafisa from its Sao Paulo headquarters. For its part, Gafisa would be completing the purchase of a 20% share in Alphaville. This purchase is for shares that Gafisa does not already own and this would cost 367 million reais. This would allow Gafisa to retain 30% shareholdings in Alphaville.
This is the first transaction that has come into fruition for Blackstone's 2010 investment in the Brazilian partner. This is also the first time for the firm to invest in the Brazilian residential real estate market. Aside from this investment, its Brazil portfolio includes assets that it acquired as it took over the management of a Bank of America Corp/Merrill Lynch & Co back in 2008.
According to Blackstone's global head of real estate, through a statement said "Alphaville is a well-managed, high potential Brazilian company primed to capitalize on the country's increasing growth and development."
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