Property tycoon launches Brazil investment portfolio

KEITH Punler, ex-footballer and founder of North Queensferry-based investment and aviation firm Kapital Corporation, will launch a series of investment seminars in Scotland this autumn aimed at attracting high-fliers interested in taking advantage of land and residential development opportunities in Brazil.

Punler, who sold luxury housebuilding firm Manor Kingdom for 40 million in 2004 to Surrey-based entrepreneur Remo Dipre, began looking into Brazil as a residential property developer in 2007 when he realised the UK market was "too toppy".

The investment vehicle is available through Punler's firm, Kapital International, although the firm operates locally as Kapital Nordeste Empreendimentos Imobilirios.

Punler's operations and investments are based on the cosmopolitan north-east of the country in Fortaleza. Already, Punler says he has invested "significantly" in development there. Investors can buy into development opportunities starting from 15,000 and upwards.

"We have more than 500 plots under ownership or option so far," said Punler. "Investors who have bought in early are already seeing returns in excess of 25 per cent in an 18-month period. We can't guarantee that every time but it is an example how the macro-economics of Brazil are working pretty well."

Punler said Brazil has very low levels of mortgage penetration - he estimates this to be about 2 per cent while other emerging economies like China and Chile run at 13-14 per cent. In the UK, mortgage penetration as a percentage of GDP is 70 per cent.

Brazil is one of the so-called 'BRIC' countries, which includes Russia, India and China. Investment bank Goldman Sachs has predicted that BRIC economies together could be larger than the G7 in US dollar terms in 40 years. Brazil has not enjoyed the explosive growth of the others, although there are fears China's economy, in particular, is in danger of overheating.

The Brazilian Central Bank is predicting economic growth of 6.3 per cent this year and 4.5 per cent in 2011. The country is also set to be home to the FIFA World Cup in 2014 and the Olympics in 2016, both promising to bring in billions of pounds through tourism and infrastructure development.

Although cities such as Rio and So Paulo are blighted by urban poverty, the country is seeing a boost in the numbers counted as middle class, which Punler believes bodes well for housing developers.