investment services
About
On the Avenue (OTA) Brazil (BR) is an investment platform in Brazil targeting residential real estate properties of new construction that offer reasonable risk and high returns. OTA BR is owned by OTA LLC in USA.
OTA BR is fully registered in compliance with Brazilian law and is legally authorized to conduct business.
Presently OTA BR has invested funds in residential developments with GMV Incorporadora e Construtora (GMV), a company with wide connections in Praia Grande, Brazil. This densely populated city is an established beach resort with a population of 320,000. Sao Paulo’s metro population of 21,000,000 is just 44 miles north of Praia Grande via superhighway.
GMV specializes in low income housing in conjunction with the Brazilian government sponsored initiative of Mina Casa Mina Vida. Since municipalities want to attract these projects, they let the real estate developer choose available land where to locate the project. Under this program developers have an ensured demand from a population that will have access to inexpensive formal housing through an unprecedented volume of public investment. Moreover, the developer bears no credit risk, as Caixa Economica Federal takes on the full credit risk. Caixa is the third largest bank in Brazil in assets and one of the five largest in Latin America. With headquarters in Brasilia, the institution is linked to the Ministry of Finance and operated as a strategic partner with the Federal Government in the infrastructure, housing, and sanitation sectors, contributing to the social and economic development of the country.
GMV, a team with financial, engineering and construction capabilities, purchases the land and develops the properties.
Residential buildings
Vertical development (residential) with 30 to 80 apartments, from 47 to 90 square meters, built in the main and most valued neighborhoods of the city.
On average, these projects have a development cost, including land, of US$ 3,400.000/ R$ 18,000.000. The sales price yields an average profit of 90% and development takes approximately 36 months.
Residential condominium
Each development contains between 6 and 10 residential condominium units. Unit sizes range in size from 46 square meters to 82 square meters.
Residential development is currently under construction at 10 different sites in Praia Grande/BR.
On average, these projects have a development cost, including land, of US$280.000 / R$ 1,484.000. The sales price yields an average profit of 30% and development takes approximately 12-15 months.
business structuring
Each project is structured as an SCP. Under Brazilian law, the SCP is legally recognized as a corporate type and is governed by sections 991 to 996 of the Brazilian Civil Code, according to which it is possible to define the SCP as an “internal partnership”, incorporated by means of an agreement to discipline the relationship between a venture partner (“active partner”-sócio ostensivo) and an investment partner (“silent partner” – sócio participante) for exploitation of a certain project or business.
business structuring
Each project is structured as an SCP. Under Brazilian law, the SCP is legally recognized as a corporate type and is governed by sections 991 to 996 of the Brazilian Civil Code, according to which it is possible to define the SCP as an “internal partnership”, incorporated by means of an agreement to discipline the relationship between a venture partner (“active partner”-sócio ostensivo) and an investment partner (“silent partner” – sócio participante) for exploitation of a certain project or business.
business structuring
Each project is structured as an SCP. Under Brazilian law, the SCP is legally recognized as a corporate type and is governed by sections 991 to 996 of the Brazilian Civil Code, according to which it is possible to define the SCP as an “internal partnership”, incorporated by means of an agreement to discipline the relationship between a venture partner (“active partner”-sócio ostensivo) and an investment partner (“silent partner” – sócio participante) for exploitation of a certain project or business.
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