BTG enters the real estate market retaken

Economic value

17/06/2019-05:00

By Graziella Valenti

Enforce, a company of BTG Pactual specializing in recovery of stressed credits, will enter the market of pulverized real estate. The target is the residential units that are in the portfolio of other banks, which have resumed the goods due to delinquency in credit. The budget reserved only for this year to purchase this type of property is R $1billion, and R $250 million must be invested by the end of this month.

"This market is enormous. We are assembling our structure to deal with this segment since June of last year, "said Valor Alexandre Camara, partner of BTG Pactual responsible for the area of stressed credits and Enforce.

Only the five main Brazilian banks-Caixa, Bradesco, Santander, Itaú and Banco do Brasil-currently have a portfolio equivalent to R $18.7 billion in pulverized properties. Of this total, almost 62% are from the box. The number of units scattered across the five institutions exceeds 102,000.

At this time, about 5000 properties have been mapped in the portfolio of these banks by Enforce and that will be the first to be acquired. The market value of these properties is in the order of R $1.25 billion.

The structure prepared to which Camara refers is devoted to the regularization of all documentation, clearance of the buildings and also the physical preparation of the environments to be resolded. In addition to purchasing units, Enforce also sees opportunity to manage bank portfolios with these assets, as explained by the executive. One way to do this, for example, is to create dedicated credit rights funds (FIDC).

The actuation with real estate is not exactly new to Enforce because they often appeared as assets within credit recovery processes. However, from now on, there will be an area dedicated to this market. The company already has almost 400 units in its portfolio today-there are still others almost 1,700 related to credit recovery processes, whose rights were acquired by the company of BTG.

To compose the system that will be dedicated to this, BTG has purchased control from Resale. Founded in 2015 by the entrepreneur Marcelo Prata, who has been operating in the real estate market for over a decade, the company is a technology platform dedicated precisely to facilitate the sale of real estate recovered by banks. Silver said that over these four years of existence more than 2000 properties were sold within that channel.

Without revealing the value of the transaction, the entrepreneur, who will continue in the project despite the sale of majority share, explained that 80% of the resources that were injected by BTG in the business will be focused on the development of technology and artificial intelligence for Expansion of the way of acting. "The bank's portfolio today is almost like the pre-salt of the real estate market. There is much to be explored, "said Prata. According to him, it was essential for the business to define that Resale will not be dedicated to BTG and Enforce and will continue to act with various institutions.

Investment in technology and artificial intelligence is vital to the credit recovery market. Enforce, chaired by Ricardo Cardoso, has invested more R $22 million since it was acquired by BTG Pactual in 2016. Today, it manages a total of R $35 billion in stressed and immovable credits and has become one of the main in this business throughout Latin America.

Source: Value

https://www.valor.com.br/financas/6308667/btg-entra-no-mercado-de-imoveis-retomados