Brazil’s Leading Retailer Pão de Açúcar Expanding Further into Residential Property
The Pão de Açúcar retail group has recently announced their intention to launch 25 real estate development projects in partnership with Brazilian real estate development companies in Rio de Janeiro, São Paulo, Mato Grosso, Pernambuco, Ceará and Goiás states.
CEO of GPA Malls & Properties Caio Mattar stated in an interview with the Estadão news site: “Our intention is to purchase land plots whilst creating shopping areas and residential buildings. Within the next 7 or 8 years, we will have several projects in construction.”
Nine of the developments are currently in the phase of pre-launch with the Thera Faria Lima Pinheiros (São Paulo, in line with the Cyrela construction group) and two other projects expected to be launched this year. According to Mattar, the aim is to boost land profitability via a multi-faceted approach to development (the group currently owns 1.5 million metres squared throughout Brazil). He also stated the group´s intention to tie in with companies that are listed on the Bovespa stock exchange and have “strong capital structures.”
The group is also planning to open 80 new stores in 2012 with organic growth plans set at 120 per year from 2013 onwards – “within this number there will be between 20 and 30 percent which will have a mix of residential, commercial and hotel real property development incorporated,” stated Mattar. Another area of further expansion will be in the area of commercial galleries which are currently bringing the group a turnover of R$ 100 million annually.
