BM Sua Casa to focus distribution network expansion in northern, central regions

- Monday, July 18, 2011

BM Sua Casa to focus distribution network expansion in northern, central regions

Brazilian mortgage lender BM Sua Casa will focus the expansion of its distribution network in the country's northern and central regions this year and in 2012, company director Elyseu Mardegan Jr told BNamericas.

These are some of the least developed regions in Brazil, but they are today enjoying higher economic growth than the national average and the middle class is expanding very fast in these regions, said Mardegan Jr.

The lender operates through stores and offices with the former being larger points of sale on streets or in shopping malls and the latter smaller points of sales in commercial office buildings.

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In the second half of this year BM Sua Casa plans to open 11 new stores to reach a total of 65 by year-end, said Mardegan Jr. The new stores will allow the lender to reach a nationwide presence, he added.

The company will continue its expansion next year by adding 33 offices to its current 34. The executive said that the offices are a good starting point in mid-sized cities to gauge demand and obtain the critical mass to justify the potential opening of a store at a later stage.

The lender is mainly focused on the middle and lower middle-income segments and Mardegan said he expects very strong mortgage demand from these segments in the coming years due to the stable and fast-growing economy and the country's housing deficit.

BM Sua Casa is a niche player in the Brazilian banking sector and it closed last year with a loan book of 320mn reais (US$202mn). The company is the mortgage lending arm of Brazilian Finance & Real Estate (BFRE).