Blog

Despite what was recently reported as a liquid profit level of R$ 752 million for 2011 (as at November), the number of legal cases being taken against PDG Realty has offset what would normally be a reason for the prominent real estate developer to celebrate.

Interviewed by the Brasil Econômica magazine, the Dutra & Saad Associates law firm stated that alone it has 45 impending cases against the construction company.  According to Leonardo Saad: “all of them are involving people who have purchased properties in three developments in Ponta da Praia, Santos [São Paulo]” – going on to state that a heated market has led to a rising number of client dissatisfaction cases owed to breach of municipality legislation, labour shortages and overall confusion as a result of the larger number of construction company mergers that have occurred in recent years.  PDG Realty purchased the Agre construction company, inheriting the three Santos projects which were supposed to be delivered in February 2010.  Also, speaking to the Brasil Econômica magazine, two buyers of PDG units in Santos (Adriana do Nascimento Santos Nascimento) who have started legal proceedings for compensation stated: “the new deadline for delivery is February 2012 – with a possibility that it may be delayed further.”

João Crestana, president of Secovi commented – in defence of PDG – that the sector has grown 25 times in just 7 years stating “there will always be challenges in a market that is evolving so rapidly.”