The private investor fund manager arm of Knight Frank aims to launch a Brazilian property fund to take advantage of one of the world’s fastest-developing economies.
Rutley Capital Partners is looking into launching a fund before the end of this year. The company, which raises equity from wealthy individuals and institutions, will join property companies such as DTZ in launching a fund to capitalise on rapid growth in Brazil.
Last month, Morgan Stanley released a report identifying Brazil as the best of the emerging countries in which to invest, ahead of Russia, India and China for the first time.
‘It is one of those economies that has always been nearly there, but now it’s actually got there,’ said Nick Burnell, partner at Rutley. ‘There are a lot of multinational investors and companies going over there, and it is a high-growth economy.
‘It is also more mature, in that central bank borrowing is down to about 7%-8% of GDP. This is all good for the real estate fundamentals.
The supply and demand balance is good, and it’s a fragmented market. There are a lot of opportunities for active management.’ and when you put all that together it’s interesting.’