Acquisition of Tenda Shares Expands Presence in High Growth Sector
Equity International, the privately held investment company focused on
real estate-related businesses operating outside of the United States,
announced today the acquisition of approximately 20 million shares in
Construtora Tenda S.A. (Bovespa:TEND3), a publicly traded Brazilian
homebuilder focused exclusively on the affordable/entry-level segment.
This transaction, through Equity International’s Fund IV, represents an
approximate 5 percent ownership stake. Tenda marks Equity
International’s fifth portfolio company investment in Brazil.
Headquartered in São Paulo, Tenda was founded in 1994 in Minas Gerais as
a high-quality, low-cost homebuilder, solely dedicated to the
affordable/entry-level housing segment. The Company is focused on the
fastest-growing metropolitan regions in Brazil with the greatest housing
deficits, and currently operates in 64 cities across 13 states. In
October, Gafisa S.A. (NYSE:GFA)(Bovespa:GFSA3), another Equity
International portfolio company, acquired a 60 percent majority
ownership stake in Tenda through the merger of its Fit Residencial
business unit with Tenda.
“Equity International is excited about the affordable homebuilding
sector in Brazil as significant unmet demand, magnified by household
formation, creates an extraordinary growth opportunity,” said Gary
Garrabrant, chief executive officer of Equity International. “This
transaction distinguishes Tenda as an Equity International portfolio
company and we look forward to working directly with the Tenda
management team to capitalize on this opportunity.”
Brazil has a large, youthful and growing population, with ongoing
household formation and substantial demand for new housing. With a
housing deficit estimated at approximately 7.2 million homes, the need
is particularly acute at the affordable/entry level. Tenda is the only
national homebuilder in Brazil that is fully focused on this market
segment. In addition to its national presence and large land bank, the
Company boasts a unique, dedicated in-house sales channel that
differentiates it from other builders in the market: Tenda owns and
operates more than 30 stand-alone retail centers, through which its 300+
person sales force is able to sell units across multiple Tenda projects
from centralized locations, increasing the product choices and sites
available to consumers. These centers also enable Tenda to initiate
credit analysis and mortgage approval applications, simplifying the
entire purchasing process for these first-time homebuyers.
“Equity International is recognized as a leading investor and builder of
world-class companies, and we are proud that they have chosen to invest
in Tenda,” said Carlos Trostli, chief executive officer of Tenda. “Tenda
will benefit greatly from Equity International’s global experience,
particularly in the affordable/entry-level homebuilding sector.”
Equity International will provide strategic direction and counsel to the
Company in addition to tactical contributions. Thomas McDonald, Equity
International’s chief strategic officer, will join the Tenda Board of
Directors pending shareholder approval.
About Equity International
Equity International is a privately held investment company focused
exclusively on real estate-related businesses operating outside of the
United States. Founded in 1999 by Sam Zell and Gary Garrabrant, Equity
International is recognized as a leading international investor and
partner of choice with multi-dimensional capability. With $1.5 billion
raised through a series of four funds and invested across 18 portfolio
companies to-date, Equity International’s presence spans the globe and
the real estate spectrum. Equity International is affiliated with Equity
Group Investments, LLC, the investment company founded and led by Sam
Zell, with a vast array of corporate and real estate interests. For more
information, please visit www.equityinternational.com.
Equity International
Allison T. Davis
001.312.466.3625
adavis@equityinternational.com
