BFRE exec sees more REITs, mortgage securitizations in 2011

Friday, April 1, 2011

The Brazilian market is likely to see more real estate investment trusts (REITs) and mortgage-backed securitizations this year, Brazilian Finance & Real Estate (BFRE) CFO Daniela Mesquita told BNamericas.

BFRE launched the first REIT in Brazil last year, worth 370mn reais (US$229mn), and saw its residential and commercial-backed mortgage securitizations jump fivefold to 3.7bn reais.

Considering Brazil's fast-growing mortgage market and good economic momentum, it is "natural" to expect a more dynamic market for financial instruments such as REITs and mortgage-backed securitizations, Mesquita said.

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BFRE's mortgage-backed securitizations represented close to 50% of the total issued in Brazil last year, according to the company.

BFRE saw net profits soar 123% to 117mn reais in 2010, on the back of strong growth across all its business lines.