Tishman raises $600m Brazil fund

The New York-based firm has launched a Brazil-focused fund as the country continues to draw private equity real estate investment capital.

Tishman Speyer has closed on a R$1.2 billion ($600 million; €400 million) vehicle, Tishman Speyer Brazil Fund, to invest in the growing Brazilian property market.

The fund focuses on the acquisition, development or redevelopment of office, residential and mixed-use properties. The properties will be aimed at multinational corporations, domestic companies and increasingly wealthy Brazilians.

Tishman’s Brazil group is based in Sao Paulo. The firm is targeting investments in São Paulo and Rio de Janeiro as well as other urban areas lacking supply of high-quality office and residential space.

The firm's efforts in Brazil are led by senior managing director Daniel Citron, head of Latin America. Citron was the chief financial officer of Brazil Realty for five years prior to joining Tishman. The firm’s leasing and acquisition efforts in Brazil are headed by managing director Daniel Cherman, who previously spent a 12-year career at Birmann S/A Comércio e Empreendimentos planning and managing large-scale commercial and residential building development.

Other firms have also been active in the country. In October, The Carlyle Group made its first Brazilian investment in local real estate developer Scopel. Three weeks after The Carlyle Group’s announcement, New Jersey-based Prudential Real Estate Investors, the real estate investment and advisory business of Prudential Financial, announced it had formed a joint venture with Racional Engenharia to target investments in Brazil’s industrial property market. The joint venture is focusing on the development of distribution centers, light manufacturing facilities and industrial parks in the country.

This year has been a busy one for Tishman. In May, the firm closed on its European Real Estate Venture VI fund, with over €1 billion in equity. The pan-European, value-add fund focuses on repositioning, redeveloping and developing office properties, but may also invest in large-scale residential developments and mixed-use properties with a predominant office component.