CHICAGO--(BUSINESS WIRE)--Equity International (EI), the privately held company focused on investing and building world-class companies outside of the United States, announced today the sale of approximately 2.7 million American Depositary Receipts (ADRs) of Gafisa S.A. (Bovespa:GFSA3; NYSE:GFA), a leading national homebuilding company in Brazil, for approximately US$37 million. Following this transaction, EI remains a significant shareholder in the Company with a 5.7 percent ownership stake of ADRs and common shares.
Headquartered in São Paulo, Gafisa is one of Brazil’s leading homebuilders distinguished by a diverse portfolio in all major markets and an unparalleled product mix that caters to all income segments through nationally recognized brand names including Gafisa, Tenda and Alphaville. Over the course of its 55-year history, Gafisa has completed more than 1,000 developments and 11 million square meters of housing across 100 cities throughout Brazil.
Since EI’s initial investment in 2005, Gafisa has extended its leadership position through organic growth and strategic acquisitions including Alphaville, Brazil’s preeminent high-end community developer in 2006, and Tenda, a leading affordable/entry-level homebuilder in 2008. EI also led the Company’s successful public equity offerings on Brazil’s Bovespa in 2006 and on the New York Stock Exchange in 2007, where Gafisa was the first, and is still the only, Brazilian homebuilder listed.
“Gafisa has long been a leader and innovator in the Brazilian homebuilding market and we look forward to continuing this successful trajectory,” said Gary Garrabrant, EI’s chief executive officer. “Our sale today is part of the normal course of EI’s ongoing portfolio management activity.”
EI made its original investment in Gafisa in 2005 and a follow-on investment two years ago. “We see tremendous potential in the Brazilian homebuilding sector, which benefits directly from the country’s continuing economic expansion, increased availability and affordability of mortgage financing, and strong and unmet demand for home ownership,” noted Mr. Garrabrant.
About Equity International
Equity International (EI) is a privately held company focused on investing and building world-class companies in the most compelling emerging markets. Founded in 1999 by Sam Zell and Gary Garrabrant, EI is recognized as a leading international investor and partner of choice, distinguished by a global presence, outstanding reputation and extraordinary track record. EI has raised and invested $1.5 billion across 19 portfolio companies to-date. For more information, please visit www.equityinternational.com.