Pursuits
Real Estate Fund Alternatives Stealing Spotlight
This article is for subscribers only.
Investors in builders from PDG Realty SA to Brookfield Incorporacoes SA are swapping their shares for real-estate investment funds as developers struggle under mounting debt from cost overruns and delays.
Investments in FIIs, the Brazilian equivalent of a REIT, surged to 29.3 billion reais ($15 billion) at the end of the first quarter, from 14.3 billion reais a year ago, according to BM&FBovespa. The IFIX index of 49 funds in Brazil returned 19 percent in the 12 months through yesterday, compared with drops of 57 percent for Brookfield and 50 percent for PDG. Sao Paulo-based Cyrela Brazil Realty SA, the nation’s biggest builder by market value, posted a gain of 12 percent.