Internationalization of the investment platform will begin in Canada.
The XP Group simplified and democratized the way of investing in Brazil, gaining over 700 thousand active clients in 12 years. In these years, the Group has always been at the forefront of a financial product that recently gained prominence among the items in its portfolio: real estate funds.
The distribution of real estate funds owned by the XP Group is the responsibility of a division called XP Asset and meets a common demand of the Brazilian investor. “This investor is asset-oriented and likes to invest his money in real estate to make an income”, says Marcelo Hannud, who has 37 years of experience in real estate investment and works with the business structure of XP Asset in the sector.
With this type of fund, the customer of XP Asset has access to an efficient way of investing in the real estate market. Instead of buying apartments for rent, he becomes the owner of shares of the properties acquired by the fund, which brings several advantages. “Our portfolio is managed according to the vision of some of the country’s leading and diversified specialists, reducing risks. The investor is also exempt from taxes, does not worry about vacancy, condo fees, nor maintenance of the apartment”, says Marcelo.
Internationalization to Canada
The retail investor is just one of the ways to raise funds for XP Asset’s own real estate funds. The other is in contact with Family Offices, Funds of Funds (FOFs), pension funds and assets in general in Brazil. Now XP Asset is preparing its international expansion, seeking to raise funds with Canadian assets, in partnership with the CCBC and under the coordination of the National Bank of Canada.
To justify the choice of the country as the first in the expansion of the company’s business, Marcelo says that it is a simpler market than the American, financially attractive and with fewer players. “This makes it easier to know the international dynamics. In a single Road Show we were able to access all of the investors, give them the right attention and work our contacts better”.
The Brazilian market, in turn, is no stranger to the real estate investor in Canada. In Brazil there are already large Canadian institutions, such as Brookfield, which invested R$ 5 billion in corporate slabs in the last five years, Ivanhoe, CPPIB, among others. The North American country has about 200 assets, including medium funds that are also part of the scope of XP and that do not yet invest in Brazil.
XP Asset numbers in national territory
XP Asset real estate funds currently own more than R$ 1.5 billion in equity and include XP Log (logistic sheds), XP Malls (shopping malls), XP Industrial (industrial warehouses), Maxi Income (real estate credit) and Vista Real Estate funds, which include hotels, allotments and residential buildings. In the future XP Corp will be launched, of corporate slabs.
XP Log has R$ 370 million in assets already acquired, among them the Panasonic Distribution Centers in Extrema (MG); of Dia Supermercados in Americana (SP) and Via Varejo in Rio de Janeiro. For XP Log, R$ 500 million in funding is planned for the next year.