SAO PAULO--(BUSINESS WIRE)--Vitacon, Brazil’s leading real estate developer, has signed an agreement with Singapore’s CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), to establish a portfolio of at least 5,000 Citadines branded units in São Paulo. The first serviced residence is scheduled to open this year. An innovative developer, constructor, manager and property owner in São Paulo, Vitacon will franchise and operate the 92-unit CitadinesVN Jardins São Paulo and 122-unit Citadines VN Faria Lima São Paulo.
Mr Alexandre Lafer Frankel, co-founder and CEO of Vitacon, said: “We are delighted to form a partnership with Ascott to bring Citadines into São Paulo by tapping on the company’s extensive global sales, distribution network, strong brand recognition, loyalty, and management expertise. This is a great time for income producing developments in Brazil and together we are negotiating with international investment funds for a significant financial contribution to expand our platform in the country and South America.”
Headquartered in São Paulo, Vitacon has already delivered more than 7,000 units with its 40 developments, netting in US$ 1.3 billion worth of sales in just 7 years. A serviced apartments platform is an important diversification for Vitacon, as so far, its main business has been home building, which has attracted world class investors such as Hines.
Mr Lee Chee Koon, Ascott’s CEO, said: “Ascott’s entry into South America through franchise is a significant move to expand our global network of properties, and in turn increase our fee income. Anchoring ourselves in Brazil, we will seek to expand our footprint to other major cities including Brasília, Rio de Janeiro and Belo Horizonte. We will also explore opportunities in new markets such as Argentina, Chile and Mexico. In the next five years, Ascott aims to achieve 10,000 units in South America."
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