Market Data

International Beat

Brazil's Big Deal

Brazil is showing signs of resilience after weathering political scandals, hosting the Olympics, and emerging from a pervasive economic recession. Gazit-Globe has purchased 33 percent of a high-end, mixed used shopping center in Sao Paulo, Brazil, for $130 million from JHSF, which retains 67 percent ownership. Shopping Cidade Jardim encompasses about 200 stores, including Chanel, Prada, and Louis Vuitton, a fitness club, cinemas, and pricey restaurants. “The economic environment in Brazil is now improving, and we are beginning to see the fruits of our investments,” says Rachel Lavine, CEO of Gazit-Globe headquartered in Tel Aviv, Israel. 

Markets to Watch

Canada continues to bask in plentiful capital due to low-cost borrowing,  a favorable exchange rate, and demand from both national and global investors. Demand for commercial real estate assets in Canada’s six major marketplaces rose 34 percent compared to 2015. However, activity is limited by scarce supply. “Foreign investors continue to see Canada as a safe place for their money, particularly in gateway markets such as Vancouver and Toronto — often resulting in elevated pricing,” says Bill Argeropoulos, principal and practice leader of research at Avison Young in Toronto.

 

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