By Michele Loureiro
This model of commercial or industrial property construction, tailored to the specific needs of tenants, will be evaluated individually, starting in the state of São Paulo with potential for national expansion.
A reference and pioneer in the Real Estate segment, Ouribank is making a new foray into the segment and has a robust cash reserve to invest over the next two years. The goal is to take advantage of the context of reduced basic interest rates, savings scarcity, housing deficit, and the need to provide the market with financing for developers, builders, and land developers. In addition to supporting the construction industry, focusing on small and medium-sized companies, the bank targets custom-built constructions, known as built to suit.
In practice, built to suit is a model of commercial or industrial property construction specifically designed to meet the needs of a tenant. The developer finances, designs, and constructs the property according to the specifications agreed upon with the tenant, who in turn signs a long-term lease.
Jefferson Pavarin, head of Real Estate at Ouribank, explains that the bank is entering this segment to continue its expansion strategy. “The decision is in line with our new brand positioning, to be a multiple and complete bank,” he explains. “With this solution, we can offer financial capacity to our clients, allowing them to monetize the atypical lease contract by discounting this future financial flow,” he adds.
The new initiative was recently announced and already has some interested parties awaiting the progress of the processes. “We are analyzing risk profiles and will soon start operating. We have no regional bias and will consider opportunities in the main capitals of the country,” says the executive.
The properties do not follow a fixed pattern. They can range from smaller commercial operations to logistics warehouses and manufacturing facilities. “We will have a personalized analysis, tailored to each case, to ensure that the final risk makes sense for the operation. After all, the contracts have a duration of between 10 and 20 years,” states Pavarin.
The built to suit format offers advantages such as property customization, initial capital savings, and stability promoted by the long-term contract. Finding a reliable partner is essential, as the long-term commitment, developer dependency, and high costs can be challenging.
Among Ouribank’s differentiators, besides its knowledge of the real estate sector, is the streamlining of processes. “With our own cash, we don’t need to resort to leverage vehicles. This makes the relationship more agile and optimized,” he explains.
Additionally, close contact is also a strong point for Ouribank.. After all, the developer and the tenant will have access to a unique and specialized channel, with a proven track record in the sector.
Real Estate Market History
This is Ouribank’s third foray into the real estate sector, and it is the first time the bank has chosen to conduct business internally. In the two previous initiatives, invested companies were created to handle the segment.
In 1999, the bank created Brazilian Finance Real Estate, a company that was a leader in the segments in which it operated. The company focused on real estate-based financial products and services and was the first in Brazil to launch a real estate investment fund aimed at retail, later becoming the market leader in the REIT segment.
Another milestone for BRFE was the launch of Home Equity, which was a novelty in Brazil at the time. Everything was driven by the then Banco Ourinvest, until the company was sold to Banco BTG at the end of 2011, to whom it currently belongs.
In 2018, the bank also established Ourinvest Real Estate, an integrated platform of real estate financial solutions specializing in third-party resource management and receivables securitization. This arm was sold to Fator four years later.
The new phase, now incorporated internally into the bank, marks the beginning of a new era in real estate business. “I participated in this business evolution during my first stint at the bank, and now I return for a new phase of investments,” concludes Jefferson.