Memorandum of Investments Vetor Norte

Transcrição

Memorandum of Investments
Vetor Norte
Memorandum of Investments
Vetor Norte
September, 2013
Disclaimer
_____________________________________________________________________________________________
1. The present document, Memorandum of Investments, was produced by Investor Consulting Partners
(“Investor”), under Mrs. Júlia Caiado and Mr. Eder Campos’ request, representatives of Vetor Norte
Developers Association (AV Norte) for development of a report aimed at the promotion of the investment
opportunities available in the region of Vetor Norte.
2. Information presented in this document was obtained from reliable sources until September 30th, 2013.
3. Investor did not carry out an independent review of the data collected, thus cannot vouch for its accuracy or
authenticity, nor guarantee the occurrence of the forecasts presented hereby.
4. Investor declares that it does not hold any inside information regarding Vetor Norte, neither have any shares,
stocks, any type of participation in the businesses of the region, nor any type of information that could
compromise Investor’s impartiality in the development of this Memorandum. All costs regarding the
development of this document were supported by AV Norte.
________________________________________
Lucas Vidigal
Technical Director
Investor Consulting Partners
Alameda da Serra, 119, 12º andar - CEP 34000-000 - Belo Horizonte - MG - Brasil +55 (31) 2127-2270 - www.investorcp.com
Avenida da Marginal, 4159 - Maputo - Moçambique +258 (84) 951-9413 - www.investormz.com - [email protected]
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Table of Contents
I – Introduction to the Memorandum .........................................................................................................2
II – Business Environment in Brazil ..........................................................................................................3
2.1 Introduction ........................................................................................................................................... 3
2.2 Economic Indicators ............................................................................................................................... 4
2.3 Relevant Sectors .................................................................................................................................... 9
III – The Vetor Norte ...............................................................................................................................23
3.1 Introduction ......................................................................................................................................... 23
3.2 Economic Environment Overview ......................................................................................................... 32
3.3 Developments and Opportunities ......................................................................................................... 34
IV – Investor C.P.’s Opinion....................................................................................................................69
Alameda da Serra, 119, 12º andar - CEP 34000-000 - Belo Horizonte - MG - Brasil +55 (31) 2127-2270 – www.investorcp.com
2
I – Introduction to the Memorandum
The present document, Memorandum of Investments, was produced by Investor Consulting Partners
(“Investor”), according to Vetor Norte Developers Association’s request for development of a report that
compiles all information available about investment opportunities in the region of Vetor Norte of Metropolitan
Region of Belo Horizonte, as well as all the projects that have been finished or are already in progress.
Vetor Norte is one of the regions included in the Director Plan of Integrated Development (PDDI) of
Government of Minas Gerais, which was created to enable the planned development of the Metropolitan Region
of Belo Horizonte (RMBH). Among the regions laid down in the PDDI, Vetor Norte is certainly the one which has
most received investments from the State Government in the last years, including some major works such as
“Linha Verde”, Administrative City and refurbishments made in the Tancredo Neves International Airport (AITN).
According to the PDDI, each vector must receive incentives to achieve sustainable development of its
economy in relation to its own peculiarities. In this way, cities will become regional hubs, attracting people and
investments from neighboring municipalities. The main axis of development for Vetor Norte is AITN and the
fulfilment of a new project: the Aerotropolis. This concept, developed by John Kasarda – renowned consultant of
the aviation sector – consists basically in the construction of a metropolis surrounding an international airport,
acting as its main social and economic development propeller.
In order to demonstrate in which stage of development Vetor Norte currently is, several researches were
made alongside the Government of Minas Gerais, national and international research institutes and private
companies. The data collected were then analyzed and processed to be included in this Memorandum. However,
Investor Consulting Partners did not carry out any independent reviews of the data collected, thus cannot vouch
for its accuracy or authenticity, nor guarantee the occurrence of the forecasts presented hereby.
The first section of this report describes the Brazilian economic context and the macroeconomic scenario in
which Vetor Norte is inserted. The analysis includes some of the country’s main economic indicators, such as
inflation rate, basic interest rate, unemployment levels and exchange rate, among others.
The second section is dedicated to a deeper analysis of Vetor Norte and the most relevant aspects of each
of the cities located in the area, as well as its most representative endeavors by sector.
Finally, when analyzing the Memorandum, it is possible to understand the plans for Vetor Norte made by
the State Government and its entire economic potential for the region, as well as to compare what has already
been done. In one hand, it is evident that many large companies and high profile projects are already established
in the region, from different economic sectors. In the other hand, bearing in mind the government’s plans for the
region, the economic potential has scarcely begun to be explored by the private initiative.
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II – Business Environment in Brazil
2.1 Introduction
The indicators of economic activity, in the first months of 2013, highlighted a scenario of moderated
growth, which has been observed since the second term of 2012. The Gross Domestic Product (GDP) growth rate
of 0.6% in the first quarter of the year, compared to last year’s fourth quarter, was below expectations. However,
the second quarter’s performance has already reflected the country’s economic activity recovery, with a GDP
growth rate of 1.5% versus the first quarter of the year, exceeding market expectations and promoting a better
scenario for companies and consumers for the year.
Some specific aspects, such as a favorable environment and depreciated exchange rate, boosted a recovery
of agricultural and industrial production in the end of the second term, reducing the economy’s dependence from
the third sector. From the demand perspective, investments were more relevant than government’s expenditures
and families’ consumption. This positive scenario is reinforced by a growth of productivity and the labor market
situation, in which the unemployment rate has reached one of its lowest levels in the recent history and the value
of salaries are still growing above the inflation, even with a decline in the generation of new job positions.
GDP’s growth, in the first term of 2013, was focused on investment, with an increase of 6.0% in contrast to
a moderated growth of families and government’s consumption (2.2% and 1.3% of increase, respectively). The
external sector contributed negatively to these numbers, with an increase in the number of imports versus a
stabilization of exports.
Some industrial performance indicators point to an upcoming expansion at moderate levels and still subject
to fluctuations over the year, but with a positive tendency. The industrial production accumulates growth of 1.6%
in the period between January and April, regards to the same period last year, with expansion of the
transformation industry of 2.1%, according to the Applied Economics Research Institute (IPEA). The general
industry indicator was not the best expected due to retraction of 6.5% in the mineral extraction industry,
reflected mainly by a drop in oil production. This event is expected not to happen again from now on. It is
particularly marked by the performance of capital goods, which the production had a 13.4% rise from January to
April. These numbers, however, must be analyzed with caution, considering the atypically low basis for
comparison.
The current situation is far from representing any immediate risk to the external balance, considering the
maintenance of bulky capital influxes, sufficient enough to finance the deficit, as well as taking into consideration
the huge amount of accumulated reserves. In this sense, the recent movement towards depreciation of the
Brazilian Real (BRL) versus the American Dollar (USD) reflects changes made by international investors in their
portfolio allocation. These changes were mainly guided by a possible modification in USA’s monetary policy,
which has already been signaled by FED and early priced by the market, causing impact on currency quotations all
around the world.
In relation to the forecasts, there are divergences between the “official” scenarios and those set out by the
main Market analysts. For these, exchange rate is expected to remain in a depreciated level in the short term
(until the end of 2013), at around BRL/USD 2.25. In the long term, however, the difference in productivity
between the two economies stimulates the depreciation of BRL versus USD. As for the official inflation rate,
analysts’ projections point to an IPCA closer to 6.0% per year in 2013 and a bit better in 2014. Moreover,
according to the Market, unemployment rate is set to remain stable, with a decrease in the creation of jobs
during the second term of 2013. In general terms, it is believed that Brazilian economy performance will have
some little increase in 2014 versus the previous year, in line with global economy recovery, especially in the
United States, European Union and China.
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2.2 Economic Indicators
GDP:
Brazil’s GDP expansion will be stronger starting in the
second term of 2013 and throughout the whole year of 2014,
accompanied by possible improvements in the international
economy. According to the Focus Report, published by Central
Bank of Brazil (BACEN) on August 23rd, 2013, GDP is expected to
grow 2.21% in 2013, compared to the previous year. For 2014,
growth expectations are of 2.50%, boosted mainly by domestic
demand.
GDP breakdown by industry
5,2%
26,3%
68,5%
Generally speaking, growth of the emerging countries will
be higher than of developed ones until the end of the decade.
This more representative internal expansion requires a
significant recovery of investments, which decreased during
2012, and which will only be possible if a gradual reduction of
the global uncertainties occurs and the perspectives of growth
for China, United States and Eurozone are maintained.
Agriculture
Manufacturing
Services
Brazil’s GDP, in 2013, will reach US$ 2,456 trillion, according to IMF. The services sector continues to be the
most representative in Brazilian economy, generating 68.5% of the entire domestic product, followed by industry
(26.3%) and agriculture (5.2%).
The GDP per capita, in turn, will reach the level of US$ 12.290 in 2013, remaining stable if compared to
2012 (US$ 12.078).
Nominal GDP and GDP per person
Nominal GDP US$ Trillions (Left)
GDP per person US$ Thousand (Right)
4,0
25,0
3,0
2,5
2,4
2,5
2,6
2,8
3,0
20,0
2,1
2,0
1,7
1,6
12,7
11,0
1,0
8,6
8,4
2008
2009
12,1
12,3
13,0
13,8
14,6
15,0
10,0
0,0
5,0
2010
2011
2012
2013 E
2014 E
2015 E
2016 E
Source: International Monetary Fund, World Economic Outlook Database, April 2013
FOREIGN DIRECT INVESTMENT (FDI):
Expectations are that the amount of FDI in Brazil will rise in the second term of 2013, recovering partly
from the losses verified in 2008. An increase of 9.4% is expected compared to last year’s FDI, reaching nearly US$
70 billion by the end of 2013. For 2014, growth of the volume of Foreign Direct Investment is expected to be more
modest. Credit Suisse, the Swiss investment bank, forecasts FDI levels to reach US$ 75 billion in 2014, mostly due
to a warmer global activity and a weaker risk perception of global instability.
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In the last years, Brazil has become one of the most important investment destinations for foreign
investors, moving from 21th (2006) to 5th (2011) place on the ranking of countries which most received
investments. The sectors that most received investments are those related to the domestic market (foods &
beverages; commerce; insurances; welfare and health plans; financial services) and to the production and
extraction of commodities (metallurgy, Oil&Gas).
Since the end of 2011, the tax rate of IOF (Financial Operations Tax) and Income Tax (IRPF) has been
reduced to zero for foreign investments in infrastructure debentures, stimulating a mass influx of cash to finance
infrastructure projects in Brazil. Furthermore, in the beginning of June of 2013 Federal Government reduced to
zero the IOF tax rate for fixed income investments made by foreign investors.
FDI USD Milions
Foreign Direct Investment (FDI) - Nominal Values
FDI - % change
100,0
100,0%
87,3%
75,0
66,7
64,0
70,0
75,0
60,0%
37,5%
50,0
48,5
45,1
9,4%
20,0%
7,1%
-4,0%
25,9
25,0
-20,0%
-42,6%
0,0
-60,0%
2008
2009
2010
2011
2012
2013 E
2014 E
Source: Credit Suisse, 2012
EXCHANGE RATE:
The amount of foreign exchange transactions whether it is as FDI, exports of goods and services or other
types of national investments has impacted directly the exchange rate and fostered the establishment of
international reserves, which Government uses to guarantee the National Financial System (SFN) stability and to
finance new investments. Those reserves will move from US$ 380 billion, in 2012, to US$ 415 billion in 2013,
coming to US$ 455 billion in 2014 (what is equivalent to 17% of Brazil’s GDP), according to Credit Suisse.
The Exchange rate has been reflecting, since the beginning of the year, international investors’ appetite for
Brazilian currency, as well as the effects of the anti-cyclical economic policies adopted by authorities of the main
developed countries after the 2008 financial crisis. From 2009 to the middle of 2011, Real (BRL) was kept
appreciated against U.S. Dollar give mainly to the expansionary measures adopted by FED, to cushion the crisis
impact. However, in the last 24 months, the US currency again appreciated against Brazilian Real due to reduction
in the demand for the currency and recovery of the North-American economy.
More recently, expectations that the currency expansion cycles adopted by the primary Central Banks in
the world could be coming to an end, and the consequent portfolio relocation by international investors have led
to depreciation of the BRL against the USD. Also, the higher productivity of the north-American economy
enables a dollar appreciation in the long term.
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Fx Rate USD / BRL
2,50
2,32
2,38
2,25
2,00
1,90
1,94
1,98
1,84
1,75
1,74
1,50
2008
2009
2010
2011
2012
2013 E
2014 E
Source: BACEN
According to the Focus Report published by BACEN on August 23rd, 2013, the Exchange rate forecast for the end
of 2013 is BRL/USD 2.28, while for 2014 it is BRL/USD 2.30. The key determinants of the Exchange rate in the
short term are the Country Risk (+), the difference between the domestic and external interest rates, risk aversion
(+) and the commodities prices index (-), bearing in mind that Brazil is a commodities exporting country, especially
minerals.
INFLATION:
The National Extended Consumer Prices Index (IPCA), the official Brazilian inflation measure, closed at
5.84% in 2012, a level above the established target of 4.50%. According to the Focus Report published by BACEN
on August 23rd, 2013, the IPCA will reach 5.80% and 5.85% in 2013 and 2014, respectively. These levels are high
indeed, but still within BACEN’s target of 6.50%. Among some of the factors that most pressure the inflation,
three of them deserve more attention: the Exchange rate more depreciated; higher acceleration of economic
activity and higher expectations on the inflation itself. Such an inflation scenario above the target should prevail,
at least, until 2016, according to studies published by Credit Suisse.
Official Inflation - IPCA
8,0%
7,0%
6,6%
6,0%
5,7%
5,0%
5,8%
5,9%
2013 E
2014 E
5,4%
4,9%
5,0%
4,0%
3,0%
2008
2009
2010
2011
2012
Source: Historical Series: IMF 2013
Forecast: Focus Report, August 23rd, 2013
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Interest Rate (SELIC):
Brazil’s basic interest rate, SELIC, has suffered a cycle of successive increases throughout 2013, after a long
period of decreases finished in the last year. This cycle aims to contain the inflationary pressures, which have
demonstrated to be persistent, and which have avoided a more sustainable growth of the Brazilian economy.
BACEN’s Focus Reports predicts that at the end of 2013 and 2014 SELIC will be at the 9.25% level. On such level, it
becomes attractive again to foreign investors, possibly generating appreciation of the Exchange rate. Along with
this, new measures of tax reduction could help maintaining SELIC on levels below 9.25%.
Official Interest Rate - SELIC
15,0%
13,7%
12,0%
10,7%
9,0%
10,9%
9,5%
9,5%
2013 E
2014 E
8,7%
7,1%
6,0%
2008
2009
2010
2011
2012
Source: BACEN
UNEMPLOYMENT RATE:
The unemployment rate tends to remain at lower levels, due to the heated economic activity. In 2013, the
unemployment levels are expected to drop to 4.8% and in the following year, to 4.2%. A significant deterioration
in this case would be expected only in a scenario of strong economic recession. At lower levels, the
unemployment rate impacts positively on the domestic consumption and default rates, which expectations are of
reduction during the year.
Unemployment rate
9,0%
7,9%
8,1%
7,5%
6,7%
6,0%
6,0%
5,5%
4,8%
4,5%
4,2%
3,0%
2008
2009
2010
2011
2012
2013 E
2014 E
Source: IBGE – PME
Forecast: Credit Suisse 2012
8
CREDIT:
The credit Market in Brazil will probably expand, responding to the acceleration of economic activity and
stimulated by Government’s taxations policies of subsided credit, mainly through public banks.
Credit, US$ Billions
Credit, US$ Billions
Credit, as % of GDP
3.000,0
130,0%
2.368
2.250,0
110,0%
2.030
1.706
1.500,0
98,7%
1.414
1.227
90,0%
88,4%
81,2%
81,2%
72,2%
750,0
70,0%
0,0
50,0%
2008
2009
2010
2011
2012
Source: BACEN
TRADE BALANCE:
The negative results in the Trade Balance (exports minus imports) in the beginning of 2013 reflects some
important movements of the national and international situation: the domestic economy recovery, especially in
the industrial sector raises the amount of raw materials and intermediate goods, including oil and its derived; the
international commodities prices are decreasing and the global economic activity keeps its pace at a moderated
level, making it difficult to the expansion of exports. Moreover, there is the atypical growth of oil imports in 2013
caused by the delayed register of 2012 purchases, combined with the steep decline of the product exports on
account of domestic production reduction.
With the likely recovery of production and exports levels in the second term of 2013, and once the
temporary effects of the changes in oil imports registers are over, the tendency is of improvement of the balance,
on a monthly basis. Nonetheless, the yearly results should be the worst since 2000, when the Trade Balance
presented deficits of US$ 718 Million.
Trade balance (US$ Billions)
40,0
30
30,0
25
25
21
20
20,0
8
10,0
5
0,0
2008
2009
2010
2011
2012
2013 E
2014 E
Source: Historical Series: Credit Suisse
Forecast: Focus Report, 2013
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2.3 Relevant Sectors
REAL ESTATE SECTOR:
The perspectives of Real State sector are very favorable in the Country. Brazil has the world’s 5th biggest
population, with over 200 Million inhabitants and is currently going through the so called “demographic bonus”,
period in which the economic active population is very numerous and reflects positively on the demand for real
estate assets. GDP growth combined with the low unemployment rate and some cities’ public policies also
stimulate the demand for real estate assets.
According to the Brazilian Real Estate Market 2012 Annual Report, published by Lopes Market
Intelligence, the General Sale Value (VGV) released in 2012 was around BRL 80 Billion, approximately 7% lower
than what was observed in 2011 (BRL 86 Billion), showing some kind of stabilization in the market. The sample
used in the analysis of the Annual Report was composed of 1,321 projects, 2,769 towers and 182,803 properties
launched in the same year, by Lopes itself or competitors in 65 municipalities and 7 satellite cities. These data
totalized over BRL 69 Billion of VGV, which represents 86% of the total launched in the country.
Real Estate Developments Table
Type of
Development
Number of
Developments
Vertical Housing
Towers
Units Launched
General Sales
Value (Millions)
Price / m²
(median)
1,128.00
2,539.00
146,316.00
55,804.00
5,110.00
Commercial
163.00
195.00
29,280.00
11,040.00
8,460.00
Flats/Hotels
30.00
35.00
6,667.00
2,063.00
11,530.00
1,321.00
2,769.00
182,803.00
68,907.00
5,590.00
Total
Source: Brazilian Real Estate Market 2012 Annual Report
In 2012, 1,128 vertical housing properties were launched, while in 2011 there were 1,132, representing a
decrease of only 1%. The commercial ventures had a more significant reduction, with a decrease of 15% in
relation to 2011. The only segment that had a positive variation was the flats and hotel, which had an increase of
43%.
The number of units build in 2012 was 182,803; 15% lower than the 213,782 units from 2011. The median
price of the units had an increase of 9%, going from BRL 5,140 to BRL 5,590/m². Consequently, there was
appreciation in all kinds Real Estate segments, being the largest hike referring to hotels and flats. Vertical rising
increased 10% and commercial ventures rose 7%.
Key Sector Numbers
Data
Developments
Towers
Housing
% from total (Housing)
1,128.00
86%
Commercial
163.00
% from total
(Commercial)
Hotels/Flats
12%
% from total
(Hotels/Flats)
30.00
2%
2,539.00
92%
195.00
7%
35.00
1%
146,316.00
80%
29,820.00
16%
6,667.00
4%
130.00
-
183.00
-
222.000
-
General Sales Value launched
BRL 55.8 Billion
81%
BRL 11 Billion
16%
BRL 2.1 Billion
3%
Average GSV per development
BRL 49 Million
-
BRL 68 Million
-
BRL 69 Million
-
BRL 375 Million
-
BRL 360,000
-
BRL 307 Million
-
Units Launched
Units, average by development
Average ticket
Source: Brazilian Real Estate Market 2012 Annual Report
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Players
Cyrela
Considered one of the best Real Estate developers in Brazil, Cyrela has a 50-year history of providing housing to
more than 200,000 families. Nowadays, employs more than 10,000 people and operates in 67 cities of 16
Brazilian states. In 2012, its net earnings reached BRL 571 Million.
Gafisa
Founded in 1954 in Rio de Janeiro, became in the end of the 1980s Gafisa Imobiliária. In 1997, associated to GP
Investmentos and became Gafisa S.A. Today, Gafisa is one of the leaders in the market for development and
construction in Brazil, focused on the housing segment. Currently owns 3 major brands: Gafisa, AlphaVille and
Tenda. Gafisa is the only real estate development company to have its stocks listed at the NYSE.
Brookfield
The company is the result of merges of 3 companies: Brascan, MB Engenharia and Residential Company, which
together formed one of the leaders of the sector. Brookfield’s main shareholder is Brookfield Asset Management,
which has more than US$ 100 Billion allocated to the real estate market. During its 110 years of history in Brazil,
Brookfield has delivered over 60,000 properties and employs today around 5,500 people. The company presented
a net loss of BRL 160 Million in the second quarter of 2013.
MRV
Based in Belo Horizonte, Minas Gerais, the company founded in 1979, offers housing options in more than 120
Brazilian cities. In the end of 2012, MRV had a body of 25,000 employees and presented net earnings of BRL 528
Million for the fiscal year.
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HOTEL SECTOR:
According to Jones Lang Lasalle, international
consultancy firm, the supply of hotel sector in Brazil is
composed of 9,681 hotels and 464,477 rooms (data
from 2012). Only 8.3% of the hotels were associated
to national or international chains, holding more than
28% of the total number of rooms. The independent
hotels are still the vast majority in the country,
representing 91.7% of the total of hotels and 71.8% of
the total of rooms. It is worth noting that, according to
the methodology used by Jones Lang Lasalle, in this
category fall all hotels belonging to national chains
and which have less than 600 rooms.
Hotel Segment in Brazil
3,9%
4,4%
Hotels - International Brands
Hotels - National Brands
36,2%
55,6%
Independent Hotels < 20 rooms
Independent Hotels > 20 rooms
Source: Jones Lang Lasalle
Employing around 365,000 people and moving BRL 20 Billion per year, according to the Brazilian
Association of Hotels Industry (ABIH), the sector is of great importance to the national economy and is going
through a stable period. According to Jones Lang Lasalle, 2012 was the 8th year of consecutive growth of REVPAR
(index obtained by multiplying the annual occupancy by the average daily room rate) in Brazil, with an increase of
8.8% compared to 2011.
RevPar and Average Occupancy
RevPar (R$)
RevPar Variation (%)
Occupancy rate (%)
200
80,0%
66%
63%
147
150
122
99
100
40,0%
17,3%
20,5%
2009
20,0%
8,8%
5,1%
2008
60,0%
104
50
0
160
0,0%
2010
2011
2012
The improvements observed were driven by the average daily room rate rise, which was 15.2% higher than
the 2011 average. The occupancy rate was down from about 5.6% compared to the previous year. The low
growth of the economy in 2012 is pointed as the main reason of the drop in the occupancy rate.
Segmentation
The main segment in this sector is business tourism, being responsible for approximately 66% of the total demand
for hotel, followed by leisure tourism (at around 19%). Event tourism and other types complete the list, although
with smaller shares in the sector’s total demand
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Average Daily Room Rate for Urban Hotels by Segment
Segment
Average daily room
rate over BRL 380
Average daily room
Average daily
rate between BRL 220- room rate below
380
BRL 220
67.2%
65.4%
Total Urban
Hotels
Business
61.40%
66,00%
Leisure
19.80%
17.7%
19.2%
18.6%
Events
10.50%
10.3%
9,00%
9.7%
Tripulation
7.10%
2.4%
3.8%
3.3%
Others
1.20%
2.5%
2.6%
2.5%
Total
100.00%
100.00%
100.00%
100.00%
Source: Jones Lang LasalleSource: Jones Lang Lasalle
Hotels which have an average daily room rate over BRL 380 are considered luxurious and usually all their
amenities and services are of high standard. The tier between BRL 220 and BRL 380 includes hotel which offer
medium standard facilities, varying from 3 to 4 stars of rating, depending on the Market. Finally, hotels with daily
room rate below BRL 220 are considered value deals and usually offer simpler facilities.
According to the Real Estate Brazilian Annual Report, 30 developments were released in the main national
markets in 2012, 35 of them being towers and 6.667 unities, totalizing a General Sale Value of BRL 2,1 Billion. The
Southeast of Brazil consolidates 72% of the developments in this sector.
Guests Origin
In 2012, Brazil received around 5.7 Million foreign tourists, a figure 4.5% higher than 2011’s data,
according to Jones Lang Lasalle. The proportion of foreign guests in the total urban hotels sampling was only
15.4%, leaving the rest to Brazilian tourists. In hotels with daily room rates over BRL 380, foreign visitors
represented over 34% of the total of guests. In the medium tier, this proportion drops to nearly 20%. Finally, in
hotels with an average room rate below BRL 220, this proportion was even lower, reaching 10% of hotels total
occupancy rate.
Origin of passengers per segment
Brazilian
100,0%
19,4%
80,0%
Foreign
10,4%
15,4%
89,6%
84,6%
Room rate below R$ 200
Total
34,1%
60,0%
40,0%
80,6%
65,9%
20,0%
0,0%
Room rate > R$ 380
Room rate between R$ 200 R$ 380
According to the Ministry of Tourism, the amount of foreign tourists has hardly evolved in the last few
years. Estimative show that this figure may have increased only by 6.5% between 2005 and 2012, representing a
Compound Average Growth Rate (CAGR) below 1%.
13
Foreign Tourists in Brazil (Millions)
8,0
6,0
5,0
5,0
5,1
2006
2007
2008
4,8
5,2
5,4
5,7
4,0
2,0
0,0
2009
2010
2011
2012
Source: Ministry of Tourism
Players:
Accor
Accor, a Market leader in Europe, has more than 3,500 hotels including 450,000 rooms all around the world.
Accor Hotels are present in 92 countries and in the 5 continents. In its 45-year history, has 160,000 employees
and presented consolidated revenues of EUR 5.6 Billion in 2012. In Brazil, Accor owns 150 hotels and plans to
open a hundred more until 2016, totalizing USD 1.5 Billion of investments. Especially for FIFA’s World Cup 2014,
the Group pretends to invest over BRL 522.5 Million in 23 hotels, located in 12 cities.
Atlantica
Atlantica Hotels International is the largest independent multi-branding hotel chain of South America. There are
more than 75 hotels divided into 10 brandings for 4 segments: Economic, MidClass, Superior and Luxury. With
estimated billing revenues of BRL 700 Million in 2012 according to Istoé Dinheiro magazine, the hotel chain plans
to double its size until 2016 with investments of BRL 3.5 Billion, especially in smaller towns.
BHG
BHG - Brazil Hospitality Group is the third largest hotel chain in the country and became the first Brazilian
company to operate in the real estate segment dedicated to business tourism hotels. It was also the first company
in the sector to be listed in the New Market class of BMF&BOVESPA stock Exchange. Founded in 2009, broke new
ground as administrator of third-party hotels, as well as developer and constructor of 3 and 4 stars hotels.
Currently has an exclusivity contract with Golden Tulip Hospitality Group, being able to use Royal Tulip, Golden
Tulip, Tulin Inn and Soft Inn brandings.
A BHG ended the first term of 2013 with a total of 8,691 rooms in operation distributed into 49 hotels, being 26 of
them belonging to third-parties and 7 of mixed capital structure. Until the end of 2015, BHG plans to be with
13,077 rooms under its management, distributed into 69 hotels. In 2012 its gross operational revenues were of
BRL 245.9 Million.
Blue Tree
Blue Tree Hotels is a Brazilian hotel chain based in São Paulo and which was founded in 1997. It currently has 24
hotels in 15 different cities. Owner of the brandings Bluee Tree Park, Blue Tree Premium, Blue Tree Towers and
Blue Tree Hotel, the chain had billing revenues of BRL 325 Million in 2012, which represented a 27.5% increase
from 2011’s figures. This increase rate was 3 times higher than the growth of the entire sector in the last year.
Besides the 1,019 rooms added to the chain inventory in 2012, 5 new contracts were signed envisioning the
construction of 1,340 new rooms with release date scheduled for the period between 2014 and 2016.
14
EDUCATIONAL SECTOR:
Education in Brazil has been evolving considerably over the last years, as shown by some sector
indicators. According to the National Household Sample Survey 2011 (PNAD 2011), published by the Brazilian
Institute of Geography and Statistics (IBGE), the illiteracy rate in 2011 was 8.6% of the total population with 15
years old or more, 1.1% lower than the results from 2009. Almost 27% of the total illiterate people are in the age
group over 40 years old.
The volume of public investments in education revolves around 6.09% of GDP. Basic education is
responsible for receiving 83% of this total (5.1% of GDP). This figure is 11% higher than the total investments in
education observed in 2008. When talking about higher education, this volume represents only 1% of GDP.
Public Investments in Education by Level of Education (% of GDP)
Year
Total Investment
Childhood Education
Elementary School
High School
Higher Education
2008
5.49%
0.41%
3.41%
0.79%
0.87%
2009
5.72%
0.4%
3.63%
0.77%
0.91%
2010
5.81%
0.45%
3.57%
0.87%
0.92%
2011
6.09%
0.54%
3.45%
1.06%
1.04%
Source: Ministry of Education/INEP
The destination of high sums to education has impacted directly in the number of schools available to the
population. Today, Brazil has 192,676 schools, which employ more than 5 Million people. Private schools are
responsible for less than 20% of the total with 37,551 branches and more than 1 Million employees, according to
the 2012 School Census published by Anísio Teixeira National Institute of Education Studies and Research (INEP).
Basic Education
According to INEP, in 2009, approximately 52.5 Million students attended basic education schools,
including students from technical education, youth and adult education as well as people with disabilities. The
vast majority of the students (85,4%), attended to public schools. In 2011, according to PNAD, there was a drastic
reduction in the number of pupils enrolled. Also, the proportion of students in public schools decreased from
85.4% to 78.4% of the total.
Source: Ministry of Education/INEP
Basic Education Enrollments
Year
Total of Enrollments
Public Institutions
Enrollments
Private Institutions
Enrollments
2008
52,232,868
46,131,825
7,101,043
-
-
2009
52,580,452
45,270,710
7,309,742
-1.23%
2.94%
2010
51,549,889
43,989,507
7,560,382
-1.96%
3.43%
2011
50,972,619
43,053,952
7,918,667
-1.12%
4.74%
2012
50,545,050
42,222,831
8,322,219
-0.84%
5.1%
Variation (Public)
Variation
(Private)
The three stages of basic education are clearly defined and obviously have different structures and
purposes. Childhood education is not compulsory, but children aging from 0 to 3 years can be enrolled in day care
centers, while children aging from 4 to 5 years can be enrolled in pre-schools. The main objectives in these cases
are the physical, social and psychological development of the child. These activities are complementary to family
life education. Each municipality is responsible for providing public childhood education and regulating the
private sector.
The Elementary Education is compulsory, implying that all children aging from 6 to 14 years must be
enrolled. The State must offer elementary education for free, as well as regulate the private institutions.
The objectives in this stage are the social and natural environment comprehension, knowledge of the
political system, basic family and social values, as well as development of writing, reading and math operations
capabilities.
15
High School Enrollments
Year
Total of
Enrollments
Total Population
(15 to 17 years)
2008
8,366,100
10,262,468
2009
8,337,160
10,289,624
2010
8,357,675
10,399,385
2011
8,400,689
10,580,060
2012
8,376,852
-
High school, which lasts for 3 years, aims to further
develop the knowledge acquired in elementary school
so the pupil can feel comfortable and prepared to be
inserted in the labor market. The State has a duty to
ensure access of the population to a quality high
school education. The public network addresses 87.7%
of the total of enrollments in high school, followed by
private schools, which address 12.3%.
Source: MEC/INEP/Deed; IBGE/Pnads from 2007 to 2009 and
Demographic Census
Higher Education
Several factors put higher education in evidence in Brazil, with the average population income increase and
the growing demand of the companies for specialized labor force. The segment is composed by sequential
courses of graduate, post-graduate and extension courses that can be offered on site or via distance. The first one
has a compulsory attendance for classes and exams of 75%. The distance education (EAD) is a learning method
where the student does not need to be present in the classroom. All the necessary material including books,
papers and other, is given to the pupil and classes and exams are taken through the Internet.
Brazil represents the 5th largest high school market of the world, and the largest in Latin America according
to the Global Education Digest 2012 study from UNESCO, data from 2010.
According to the 2011 Higher Education Census, published by INEP, Brazil has 2,365 higher education
institutions, being 190 of them universities, 131 campi, 2,004 colleges and 40 federal institutions (IFs and CEFETs)
Of this total amount, the government is responsible for only 12% of them, with 284 higher education institutions.
The vast majority (88%) belongs to the private sector.
Higher Education: Number of Institutions
Type
Unities
Public
Private
Proportion
(Public/Total)
Proportion
(Private/Total)
Universities
190.00
102.00
88.00
53.6%
46.4%
University Centers
131.00
7.00
124.00
5.4%
94.6%
2,004.00
135.00
1,869.00
6.8%
93.2%
40.00
40.00
-
100.00%
-
2,365.00
284.00
2,081.00
12.00%
88.00%
Colleges
IF and CEFETs
Total
Source: 2011 Higher Education Census
In all, 30,420 courses are offered, 9,833 of them by public institutions and 20,587 by the private sector.
With just 6.7 Million higher education enrollments, the vast majority (73.7%) refers to private institutions.
Public institutions are responsible for just 1,773,315 (26.3%) of the total. The total number of enrollments
represents a lower figure if compared to the high school enrollments (8.4 Million), which theoretically should
continue in the higher education level.
16
Higher Education Enrollments
Age
Total Population
(2010 IBGE)
Number of
Enrollments
18 e 19 years
6,632,998
723,566
20 to 24 years
17,245,192
2,687,484
25 to 29 years
17,104,414
1,402,251
30 to 34 years
15,744,512
807,320
35 to 39 years
13,888,579
470,831
Again, according to data from 2011 Higher Education
Census, the tier including people aged from 20 to 24
years has the higher proportion of enrollments in
higher education, with more than 2.6 million students.
Data from the 2010 IBGE Census show that the market
might be under-exploit by the private initiative and
poorly addressed by the Government.
Source: IBGE, INEP
Players:
Estácio
Operating in 21 Brazilian States, Estácio Participações S.A. is one of the largest higher education chains in the
Country. Based in Rio de Janeiro, is a publicly traded company which has over 40 years of experience in this
segment. Nowadays has around 330,000 pupils enrolled in more than 70 branches. It offers a campus, various
university centers and colleges.
Kroton
One of the largest private education institutions in Brazil, Kroton has more than 45 years of history. With a
comprehensive business model, the Group operates from childhood education to master’s degree. The
organization has more than 411,000 pupils enrolled in graduate and post-graduate levels and 289,000 students in
basic education. Besides that, there are 447 hubs of distance learning distributed in every Brazilian state, 53
campuses located in every corner of the country and 810 associated schools. Kroton also has 6 schools in Japan
and one in Canada.
Anhanguera
One of the largest global education institutions, Anhanguera also is one of the biggest publicly traded companies
in Brazil’s education sector. With more than 490,000 students, the Group owns 70 campuses and more than 500
hubs, located in all the Brazilian states. In December 31th, 2012, its market value was of BRL 5 Billion. The Group
had net earnings of BRL 152.1 Million at the end of 2012, representing a growth of 260,8% compared to the
previous year.
In April, 2013, Anhnaguera merged with Kroton, forming the largest educational group in the world.
17
AVIATION SECTOR:
According to the 2011 Civil Aviation Annual Report made by the National Civil Aviation Agency (Anac), in
2011, Brazil had 507 aircrafts and 168 locations covered by aerodromes. The majority of the Brazilian airports is
located in the Southeast region, and 6 of the busiest of them are located in capital cities or large metropolitan
areas.
Main Airports in Numbers of Departures
City
Airport
Departures
Guarulhos/SP
GUARULHOS - GOVERNADOR ANDRÉ FRANCO MONTORO
101,083
Congonhas/SP
CONGONHAS
79,593
Brasília/DF
PRESIDENTE JUSCELINO KUBITSCHEK
77,477
Rio de Janeiro/RJ
AEROPORTO INTERNACIONAL DO RIO DE JANEIRO/GALEÃO
56,417
Confins/MG
AEROPORTO INTERNACIONAL TANCREDO NEVES
51,144
Rio de Janeiro/RJ
SANTOS DUMONT
49,622
Salvador/BA
DEPUTADO LUÍS EDUARDO MAGALHÃES
47,402
Campinas/SP
VIRACOPOS
43,225
Curitiba/PR
AFONSO PENA
41,131
Porto Alegre/RS
SALGADO FILHO
38,194
Source: ANAC
The 10 main domestic routes involve the country’s main airports. These routes usually are between
Southeast capitals or include at least one of them as point of origin or destination.
Number of Seats and Flights in the Main 10 Routes (Domestic Operation, 2011)
Route
Offered Seats
Flights
São Paulo (Congonhas) - Rio de Janeiro (Santos Dumont)
6,540,030
41,073
São Paulo (Congonhas) - Brasília
2,976,780
18,150
Salvador - São Paulo (Guarulhos)
2,819,819
17,161
São Paulo (Congonhas) - Belo Horizonte (Confins)
2,357,451
14,500
Porto Alegre - São Paulo (Guarulhos)
2,261,944
14,157
Recife - São Paulo (Guarulhos)
2,257,179
12,676
Salvador - Rio de Janeiro (Galeão)
2,166,994
12,919
São Paulo (Congonhas) - Curitiba
2,016,967
12,249
Brasília - São Paulo (Guarulhos)
1,908,830
13,648
Rio de Janeiro (Galeão) - São Paulo (Guarulhos)
1,837,725
11,655
Source: ANAC
Over the last years, the Brazilian aviation sector has been passing through a period of continuous growth.
The favorable economic situation, added to the competition in the sector has impacted positively in some of its
most relevant indicators. Indexes such as the utilization rate, and the domestic demand and supply have
increased year over year, in contrast to the average airfare for domestic routes that have dropped considerably,
what favors the increase of number of passengers.
Even with all the positive indicators relating to the sector, 2013 has been unfavorable to aviation
companies. In addition to the increase in the prices of fuel, the maintenance and insurance costs increased too,
which, by the way, are the most relevant costs in this sector. Fuel, leasing, insurance and maintenance usually
represent 47% of the total costs and expenditures, which contributed to a loss of BRL 1.5 Billion in the period.
18
Air transport supply and demand
The supply of air transport considers only the commercial flights of Brazilian and foreign companies,
including scheduled, extras, charter and cargo flights. The table below shows the annual variation of supply, in
terms of Available Seat Kilometer (ASK) – measure of an airline transport capacity. This indicator is obtained by
multiplying the possible number of passengers in a plane by the quantity of kilometers flown.
Annual Air Transport Supply Variation (ASK) - Domestic and International Markets
Year
Domestic
(ASK x1000)
Variation (%)
International
(ASK x1000)
Variation (%)
2008
75,092,338
11%
27,840,425
19%
2009
86,074,386
15%
28,477,687
2%
2010
102,656,359
19%
31,118,513
9%
2011
116,080,248
13%
33,451,444
7%
Source: Air Transport Annual Report, 2011 / ANAC
The demand for passengers is obtained by periodically registered data from ANAC, by Brazilian and foreign
companies and presents the total quantity of paying passengers transported.
Number of Passengers Transported
Year
Domestic
Passengers
International
Passengers
Total
2008
49,857,578
13,664,250
63,251,828
2009
56,891,532
12,833,993
69,725,525
2010
70,006,559
15,512,925
85,519,484
2011
82,049,177
17,892,320
99,941,497
The good moment of the Brazilian economy reflects the growth rate of domestic passengers. Even in the
period of crisis in 2009, in spite of the decrease in the international passengers demand, there was an increase in
relation to 2008’s figures. In the subsequent years, the growth rate remained stable. Other factors that impact in
the stabilization of the growth of domestic passengers transported are the increase in the aircraft utilization rate
and the constant reduction of the average airfare rate in the last years.
The domestic utilization rate considers only the commercial flights of Brazilian companies in the year of
2011 (schedule, extras and charter flights) and went from 56.6% in 2002 to 70.2% in 2011.
The average airfare is an economic indicator that corresponds to the average price paid by passenger in a
trip, regardless of stops or connections and distance of flights. In 2011, the airfare reached the lowest level in 10
years (BRL 276.25), 6.8% lower than the BRL 296.33 from 2010. The record number in 2011 was the main
propeller in the passengers’ number growth in the country.
Another important measure in the aviation sector is the Revenue Passenger Kilometer (RPK), calculated by
multiplying the number of paying passengers transported by the number of kilometers flown. This includes
passengers traveling with discount tickets, those benefiting from promotional offers and people using loyalty
programs. It does not include people travelling for free, airline employees and children that do not occupy a seat.
19
Annual Air Transport Demand Variation (RPK) - Domestic and International Markets
Year
Domestic RPK
(x1000)
Variation (%)
International RPK
(x1000)
Variation (%)
2008
49,563,355
8%
19,516,329
31%
2009
56,728,594
15%
19,656,773
1%
2010
70,237,904
24%
23,752,904
21%
2011
81,452,332
16%
26,363,500
11%
The data below refer to the total domestic and international paid cargo that was transported between
2008 and 2011 in the country. The domestic cargo is loaded in Brazilian airports destined to domestic cities. The
international cargo is obtained by the sum of cargo loaded in Brazilian airports intended for export and the cargo
loaded in other countries intended for export to Brazil.
Air Transport of Cargo
Year
Domestic Cargo
(Kg)
International
Cargo (Kg)
Total
2008
351,578,513
582,706,311
934,284,824
2009
324,837,496
470,242,469
759,079,965
2010
386,374,057
644,937,398
1,031,311,455
2011
412,880,257
717,733,589
1,130,613,846
Players
Tam
Táxi Aéreo Marília (TAM) was founded in 1976 with the aim of providing high quality and differentiated
services to its customers. The company is the leader of the domestic market in Brazil, with a market share of
42.1% and flight occupancy of 84.4%. In the international market operated by Brazilian company, Tam presents a
market-share of 85.6% and flight occupancy of 82.3%, according to ANAC, in July 2013.
In June 17th, 2012, TAM associated with LAN Airlines, originating the LATAM Airlines Group, the largest
airline group in Latin American in terms of aerial mesh, offering passenger transport services to more than 135
destinations in 22 countries, and cargo transportation services to 144 destinations in 27 countries, counting with
321 airplanes.
Gol
Founded in March 12th, 2004, Gol is, according to the International Air Transport Association (IATA), one
of the largest low cost Airlines in terms of transported passengers in 2012 and the largest of this category in Latin
America that offers regular flights to main Brazilian cities as well as the main cities of South America and the
Caribbean.
Gol was the first company to successfully introduce low-cost practices and technologies in the transport
segment in Latin America. With a diversified base of revenues, serves from business executives to tourists in
vacation to other Brazilian destinations. In June, 2013, the company had 970 daily flights to 65 domestic markets
and 10 international destinations such as South America, United States and the Caribbean.
Azul/Trip
Founded in March, 2008, Azul has changed the national commercial aviation panorama, focusing on
regional flights and using secondary and peripheral airports. In May, 2012, Azul and Trip Linhas Aéreas merged
originating the third largest Brazilian aviation company. Together, Azul and Trip add up more than 121 aircraft,
840 daily flights and 100 destinations and dominate approximately 15% of the market.
20
INFRASTRUCTURE AND LOGISTICS:
The effective sustainable and accelerated development of any nation is only attained when logistics and
infrastructure bottlenecks are solved. In this way, this involves, among other factors, the construction of a wide
and modern airport, rail, and road networks with integrated logistics.
According to the Federal Government of Brazil, the total investment planned in infrastructure for the next
30 years are of BRL 253 Billion. The main programs of investment are the Growth Acceleration Program (PAC) and
Logistics Investment Program (PIL).
When it comes to airports, the PIL will include investments for the expansion of the air transport supply,
the regional aviation network reconstruction and improvements in the quality of services and airport
infrastructure. The total investments planned in the program will reach BRL 7.3 Billion, this amount being applied
to 270 regional airports. The program also plans to authorize private airports to operate in the commercial
aviation, with special financing conditions. It is scheduled for November, 2013 the concession auction for the
airports of Galeão and Confins, which will probably attract over BRL 5 Billion of investments.
For the road network, again according to the Federal Government, many road duplications are expected in
the main road transport axis in the country, as well as establishment of concessions in over 7,500 km of federal
roads. Among the parts of the highways, some of them pass through Minas Gerais state:
- BR-262 ES/MG;
- BR-050 GO/MG;
- BR-153 GO/MG;
- BR-262 MG;
- BR-116 MG; e
- BR-040 DF/GO/MG
The concession model includes the duplication of roads which must be concluded during the first five years
of contract. Public Brazilian banks will be able to finance up to 70% of the investments with an interest rate of
2.0% per year, plus the TJLP (long term interest rate). The main objective of the model is to improve the logistics
integration between the various transport modes in ways that will further benefit Brazil with competitiveness
gains. Investments in infrastructure are expected to push for economic growth and sustainable development of
the country.
In the railroads sector, PIL includes investments of around BRL 99.6 Billion on improvement and
construction of 11,000 km of railroads. The railroad program has as main guidelines: supply of a wide, modern
and integrated railroad network; competitive and efficient supply chains and charging affordability. It also
envisages a new concession model, in which participating companies are responsible for the infrastructure,
signaling and control of trains. The concession, which will last for 35 years, will contemplate broad gauge tracks
(1,600 mm) that present a high capacity of cargo handling and geometric design optimized for higher speeds (80
km/h).
The High Speed Train (TAV) is a railroad transport service of passengers that will connect the cities of Rio de
Janeiro, São Paulo and Campinas. The TAV project will represent a technological landmark for Brazil, becoming a
new transport option that will provide a safe, quick, comfortable and reliable trip to its customers. The
investments are estimated in BRL 35.6 Billion and hope to reduce the pressures imposed by the growing flux of
passengers in airports and highroads, mainly between Rio de Janeiro and São Paulo.
The TAV’s implementation process is structured in two stages. In the first one, with the auction scheduled
for 2014, the railroad operator will be selected, under a 40 year concession contract. The National Terrestrial
Transports Agency (ANTT) is in charge of the TAV concession for operation. The public notice containing the rules
of the process was released in December 12th, 2012. After the first stage, the model for the necessary
infrastructure will be determined (bridges, viaducts, tunnels, permanent roads). The executive infrastructure
project will be contracted by the Planning and Logistics Company (EPL). The deadline for TAV’s operation to begin
is June, 2020.
21
The PIL for the port sector was released in December 6th, 2012 and foresees an investment of around BRL
54.6 Billion over the next five years, for the expansion and improvement of the sector infrastructure. Over BRL 6.4
Billion will also be invested in access ways (BRL 3.8 Billion on waterways and BRL 2.6 Billion on roads). The
program’s main guidelines are: systemic planning; scale gains; biddings for higher capacity of handling (with
shorter tariffs and lead-times); increase of competition; ports reorganization and long term planning. Public
Brazilian banks will be able to finance up to 65% of the investments with an interest rate of 2.5% per year, plus
the TJLP.
22
HEALTH SECTOR:
From the total health expenditures in Brazil, public sector responds for 42% of the total, while families and
non-profit institutions respond for the other 58%, according to the latest data from IBGE. The public health
expenditures represented 3.6% of the GDP, while the private expenditures represented 4.9%.
Brazil has been passing through a deep change in its demographic pyramid. In 1980, the Brazilian life
expectancy rate was at about 62 years. This year, the expectancy reached 74.8 years (71.3 for men and 78.5 for
women). Elderly population represented, 33 years ago, 6% of the total population, but today they represent over
10%. Medical appointments, in its turn, doubled between 1980 and 2010. At that time, there were 2 annual
medical appointments per age; nowadays there are 4, according to IBGE.
According to data from a search made by Health Multidisciplinary Assistance (MAS) in partnership with
IBGE, the number of hospital beds in Brazil has not increased in proportion to the population growth in the last
decade. In 1999, there were 0.9 public hospital beds and 2 private hospital beds for every 1,000 inhabitants. In
2009, there were 0.8 and 1.5, respectively. The current number of hospital beds in Brazil, according to the
National Registry of Health Establishments (CNES), is of 451,705 (124,189 private beds and 327,516 belonging to
the SUS – Unified Health System).
According to the Ministry of Health, over the last five years the number of doctors did not keep pace with
changes in the health infrastructure in the country. In the period, the doctors’ supply grew only by 13.4% in
comparison to the 17.3% growth of hospital beds, 44.5% growth of health establishments and 72.3% increase in
the number of registered equipment by the Federal Government.
Number of Hospitals in Brazil
Owned by
Proportion
Municipalities
21%
States
8%
Federation
Private
Total
Source: CNES 2013
1%
70%
6,756 / 100%
The Southeast region has by far, the highest number of active doctors
registered at CNES in Brazil. Even if all doctors of the other Brazilian
regions were added up, we would still fall short of doctors if compared to
São Paulo, Minas Gerais, Rio de Janeiro and Espírito Santo regions. The
Brazilian average is of 1 doctor for every group of 510 inhabitants, while
in the Southeast this average is of 1 doctor for every group of 380
inhabitants.
These data can be explained by the number of Medical Colleges in the
region and the number of offered positions. Until September 2013, there
were 202 Medical Colleges in Brazil, 89 of them only in the Southeast region.
In September, 2013, the number of health posts registered by Ministry of Health was 259,204. The
majority of them (72%) consisted of private establishments. The State’s incapacity of addressing the population’s
demand for health services can also be verified by the number of private hospitals in the country. From the total
of 6,756 hospitals according to CNES, the public portion represents only 30% of the number.
The Health sector, as well as Education’s, offers many investment opportunities in Brazil. Although being a highly
inspected service and which supply and quality should be provided by the State, in many regions, especially in the
small and medium towns, the supply for these services is still very poor, what makes the local population to seek
regional centers and very often go to the nearest capital in search of medical services. Therefore, the spread of
hospitals and health posts are seen by the Government as strategic in the development of new centralities and in
the organized urban growth.
23
III – The Vetor Norte
3.1 Introduction
The Vector Norte is, according to the
State’s
Extraordinary
Secretary
of
Metropolitan Management (SEGEM), an
area within the Metropolitan Region of
Belo Horizonte (RMBH), located to the
north of the Minas Gerais’ capital, which
encompasses eight cities: Ribeirão das
Neves, Pedro Leopoldo, Confins, São José
da Lapa, Vespasiano, Lagoa Santa, Santa
Luzia e Jaboticatubas (see map right).
The proposed development plan for
Vetor Norte is based on the expansion
Project
of
the
Tancredo
Neves
International Airport. It is an extensive
planning made by Government of Minas
Gerais, based on studies aimed at the
creation of the ideal environment for
developing services and high value added
goods, stimulating the local economy and
attracting investments.
Vetor Norte’s development plan had its origin in 2014, when the Government of the State resumed
management and planning of RMBH, proposing a new management arrangement for the territory. This new
model is composed by three public authorities: The Development Agency of RMBH, The Metropolitan Assembly
and de Deliberative Council of Metropolitan Development. Also, the model assumes two main pillars: the
Integrated Development Director Plan (PDDI) and the Metropolitan Development Fund.
The PDDI was draft only in the end of 2009, when the State’s Secretary of Regional Development and Urban
Policies signed a contract with Federal University of Minas Gerais (UFMG) to develop the plan, but even before
that there was a consensus among the Government of State that the urbanization of RMBH and the opportunities
of great potential of investment had to be reprogrammed. These ideas helped to create the concept of the
centralities that would be adopted later in the PDDI, in which every action of the Government for Vetor Norte and
RMBH are based on.
The airport in the core of growth:
Year
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Source: Infraero
Passengers Variation (%)
10,200,348
6.98
9,534,986
31.32
7,261,014
29.27
5,167,171
8.24
5,189,528
19.57
4,340,129
16.44
3,727,501
28.83
2,893,299
644.58
388,580
6.49
364,910
-
The AITN’s development gained new wind on the Government of
State’s agenda in 2002, with the deteriorating situation of Minas Gerais’
main airport at that time, Carlos Drummond de Andrade Airport
(Pampulha’s Airport), when more than 3 million passengers passed by its
gates. This volume was equivalent to 4 times the official capacity of the
airport. According to John Kasarda, that was a record number at that
time. However, more than 2 years would be necessary until some kind of
action was taken into the solution of these problems.
After a meeting between INFRAERO, Belo Horizonte’s City Hall,
ANAC, the airline companies and the Government of Minas Gerais, it was
established that March 13th, 2005 was the defined date to transfer all
long distance flights to AITN. The measure effect was immediate. In
24
2005, AITN registered an increase of 644% in the volume of passengers, from 388,000 in 2004 to nearly 2.9
Million in the following year, becoming again the most important airport in the State. This was just the beginning
of a series of changes included in the government plans for the region, including various investment projects that
would be made in Vetor Norte.
In order to attend the increasing demand for the renewed AITN, was launched the largest road sector
project of the last decades in the RMBH: Linha Verde. The project, which aims to shorten distances between AITN
and the central region of Belo Horizonte, counted with investments of around BRL 438 Million, being extended for
35.4 km, according to the Department of Highways of Minas Gerais (DER-MG). Linha Verde, which was concluded
in 2008, decreased significantly the travel time from Belo Horizonte to Confins and has driven the logistics quality
of the region, attracting even more investments to Vetor Norte.
In the final construction stage of Linha Verde, GEMG expressed even more its compromises with the
region’s development. In April, 2007, the Adminstrative City was inaugurated, a BRL 1.2 Billion megaproject that
resulted in the construction of new headquarters to Government of Minas Gerais and the transfer of all the
management offices to a single complex, along Linha Verde, between AITN and the capital’s center. One of the
key drivers for the transfer was to raise productivity and reduce State’s Government expenditures by reducing the
trips between the several Secretaries, Autarchies and Departments.
According to the Government, after its launch, the Administrative City had a daily flux of 17,000 servers,
public employees and service provides. Visitors reached around 3,000 a day, in a total constructed area of
270,000 m².
The magnitude of transformations and the speed in which the process was conducted were so huge that
led to the conception of a new project, even greater. Actually, it was so big of a project that it encompasses the
others as integral parts of its implementation, until its release. The development of the first Aerotropolis in Latin
America.
A concept, a project:
The Aerotropolis concept was created By John Kasarda, renowned advisor in the field, who is also a
Director of the Center for Air Commerce at Kenan Institute of Private Enterprise from University of North
Carolina, USA; and Honorary Professor of Strategy and Entrepreneurship at Kenan-Flagler Business School, at the
same University. An Aerotropolis consists of a ‘city-airport’ with its multimodal traffic corridors, connecting its
business districts to the aviation (manufacturing industries; distribution centers, hotel, convention centers,
commercial condos, among others), as well as the commercial and housing developments. Generally speaking,
Aerotropolis does not differ very much from a conventional metropolis, with its business core in the center of the
city and the community around.
Nowadays, there are already some examples of Aerotropolis spread around the world, such as
Amsterdam’s Schipol Airport, Dallas Forth Worth in Texas, Singapore’s Changi Airport, and Songdo in South Korea,
which is still in development. In Brazil, there are just a few airports that offer conditions that could embrace such
a concept, due to various factors that limit or even prevent the development of an Aerotropolis. The Tancredo
Neves Airport is one of the few exceptions in the Country and the best choice to work on in the Southeast region.
With an airport area of 15 Million m², it is the only Southeast airport with sufficient physical space available and
capable of containing the necessary expansion. Lately, investments have been done in the airport through the
Brazilian Company of Airport Infrastrucute (INFRAERO)*:
1.
2.
3.
4.
5.
Refurbishment of the passengers terminal #1;
Construction of the remote terminal, containing complete infrastructure to serve passengers;
Expansion of the aircraft taxi areas;
Expansion of the aircraft parking lot from 113,000 m² to 370,000 m²;
Expansion of the runway from 3,000m to 3,600m, reinforcing the security measures and enabling
the landing of bigger aircraft at AITN.
25
‘* All the works are expected to finish on May, 2014, according to INFRAERO.
Around the airport, Vetor Norte’s region has also plenty of space for the establishment of companies,
manufacturing industries, clusters, residential areas, conventions centers, hotel and logistic platforms, counting
with the entire multimodal access network to AITN and its surrounding developments. Some cities in the region
have a very low demographic density, if compared to the largest cities in the State (see table).
City
Jaboticatubas
Confins
Territorial Area (Km²)
Demographic Density
(Inhab/Km²)
1,114.97
15.38
42.36
140.15
Pedro Leopoldo
292.95
200.49
Lagoa Santa
229.27
228.27
São José da Lapa
Santa Luzia
Vespasiano
47.93
413.09
235.33
862.38
71.22
1,468.49
Ribeirão das Neves
155.54
1,917.90
Average
273.70
655.77
Belo Horizonte
331.40
7,167.02
Source: IBGE
Observing the images below, it is possible to understand why AITN is seen as the main growth alternative among
the largest airports in the Southeast:
Aerial Photograph - Confins Airport - Minas Gerais
26
Aerial Photograph - Pampulha Airport - Minas Gerais
Aerial Photograph - Congonhas Airport - São Paulo
Aerial Photograph - Guarulhos Airport - São Paulo
27
Aerial Photograph - Antônio Carlos Jobim (Galeão) Airport - Rio de Janeiro
Aerial Photograph - Santos Dumont Airport - Rio de Janeiro
Another great differential of AITN versus the others airports in Brazil is the unconditional support of the
Government of State for the Project. An example is that since 2004, John Kasarda, considered the greatest
specialist in Aerotropolis of the world, acts as an advisor for Government of Minas Gerais in any subject related to
the project. According to the Federal Government via information published at www.copatransparente.gov.br,
more than BRL 240 Million are being invested in the project of expansion of AITN that will be concluded before
that airport concession to private initiative, scheduled for the end of 2013. Additionally, until the end of 2014
another BRL 570 Million will be invested in the development of the roads infrastructure that gives access to the
airport and Vetor Norte.
All this effort from the government into the development of AITN and its region has already been noticed
by the private initiative. Developments of the most varied sectors, from hotel to industries, have already been
announced at Vetor Norte, some of them being already under implementation, leading to wealth and opportunity
generation. The private investments attraction is a fundamental part of Aerotropolis success, once it closes the
virtuous cycle that will favorite the lasting and sustainable development of the region.
28
Industry-Airport
The concept of Industry-Airport is very similar to Aerotropolis’, to what could be said that the first is part of
the macro concept and infrastructure of the second.
The model that has been structured in many cities of the world, the Industry-Airport, has as its main goal
the alignment between the local economic development and the airport operation. The developments that are
part of the airport complex are mainly industries, which have a distribution process sensible to time and with high
value added products. These are companies that demand agility, speed and connectivity offered by the airport. As
well as in Aerotropolis, a quick access to Industry-Airport is needed, regardless of the distance where the
companies or multimodal platforms around the airport are located. The essential element for the success of
Industry-Airport concept is the average time spent to access it. This time must be between 20 and 40 minutes for
the companies there established.
Another essential characteristic of an Industry-Airport is the usage of a fiscal neutrality zone, where
companies can import raw material and export the final product with reduction or exemption of taxes. This
neutrality zone is vital for logistics gains for the companies, given that there is reduction in inventories, saving
time in clearance and shipping of the goods, impacting in a great costs reduction.
In the end of 2005, it was approved by Receita Federal, the first Industry-Airport of the country, AITN. At
that time, the Industry-Airport planning process was structured in 3 stages: pilot project; stage 1 and stage 2.
However, due to a lack of a better planning and governmental incentive, the concept did not go further. Still, two
companies established their operations around AITN, seeking the opportunity: Clamper, a company specialized in
manufacturing Electrical Surge Protection Devices and Gol Linhas Aéreas, through its Aircraft Maintenance
Center.
The development plan of the Industry-Airport inside AITN will be in charge of the concessionary institution
after the public bid, which will occur in the end of 2013.
This logistics hub aims to diversify Minas Gerais’ GDP composition, mainly by promoting the electronic
components, IT, Biological Sciences, Aerospace and Defense industries. In this way, the Industry-Airport supplies
multimodal logistic support for companies turned to exports of goods, which depend on the aerial modal to
secure agility and accessibility to their suppliers and consumers.
The concession
The “Logistics Investment Program: Airport” was introduced in December, 2012, by the Federal
Government and has as objective to improve the infrastructure and airport services quality, apart from expanding
the air transport supply in Brazil. This set of measures includes the concessions of Galeão Airport (Rio de Janeiro)
and AITN to the private initiative.
After the approval of the technical, economic and environmental studies of the concessions by the Federal
Court of Auditors (TCU), the bidding auction is expected for November 23rd, 2013. The minimum value for the
concession is BRL 1.1 Billion, with an initial term of 30 years, as well as several compulsory investments by the
concessionary.



Investment required during the concession: BRL 3,6 Billion;
Time of the concession: 30 years, that can be extended for 5 years, only once;
Compulsory investments:

Construction of a new passenger terminal with a minimum of 14 boarding bridges until April 30th,
2016, counting with vehicles parking lot and associated terrestrial routes;

Expansion of the aircraft yard until April 30th, 2016;

Construction of a second independent aircraft runway until 2020;
29
In addition to these compulsory investments, 23 indicators of the service quality (IQS) were established by
the Government, to measure and contemplate different aspects of the services provided in the airport. The
evaluation will be carried out through satisfaction surveys applied to users and through the indicators analysis as
well. There are also, several other compulsory improvements for the short term, such as the free WI-FI Internet
connection, replacement of the signaling system and improvements in the restrooms.
All companies composed by at least one airport operator with experience in airports with flux of passenger
of over 35 Million per year can participate in the bidding auction. The operators must have a holding of at least
25% in the company. Infraero acts as a minority shareholder (49% of shares) of the private initiative in the
concessions. Both parts must pay-in 50% of the share capital before signing the contract.
Investments in progress:
Improvement of Vetor Norte’s roads: According to DRE/MG and Government of Minas Gerais, BRL 570
Million is being invested in projects to improve the roads condition in Vetor Norte. This is the second biggest
investment related to roads infrastructure of RMBH, according to GEMG, behind only to Linha Verde. The project
includes revitalizing 29 kilometers of roads, besides the construction of underground tunnels, tranches and
viaducts impacting directly on the traffic capacity of the ways.

Cristiano Machado Avenue: One of the main expressways to MG-010, MG-424 and LMG-800. Investments
are estimated around BRL 202 Million.

Construction of 2 viaducts in the interception with Sebastião de Brito Avenue; investments of BRL 48
Million;

Construction of 2 tranches under Waldomiro Lobo Avenue and a viaduct on Saramenha Avenue;
Investment of BRL 69 Million;

Implementation of an underground tunnel near Vilarinho Station as well as construction of Boulevard
Vilarinho; investments around BRL 85 Million.

MG-424: State’s highway connecting Belo Horizonte to Vespasiano, São José da Lapa and Pedro Leopoldo
will have investments of BRL 111 Million. The highway is being revitalized between the junctions with MG10 and LMG-800, enabling a new access to AITN.
30

LMG-800: BRL 238 Million will be invested in the duplication of this access way to AITN, precisely between
the access to Confins and MG-010 interjection. This highway will include 7 new viaducts and the expansion
of its connection to MG-424.

Construction of a new bridge of the Rio das Velhas River, on MG-010, unburdening the local traffic and
facilitating access to Serra do Cipó. Investments of around BRL 20 Million;
Foreseen Investments:

Rodoanel: the Metropolitan contour of Belo Horizonte – northern section is a project which is being
developed by the Government of Minas in partnership with companies and economic groups through the
public-private partnership model.
The bid invitation release date is scheduled for January 2014, and will grant to the private initiative the
exploration of the services for 35 years. With a 67.5 km extension, the called “Rodoanel” aims to ease the current
traffic congestion in Anel Rodoviário and become a new route to the Metropolitan Region, connecting the
municipalities of Betim, Contagem, Pedro Leopoldo, Ribeirão das Neves, Sabará, Santa Luzia and São José da Lapa.

Metropolitan Rail Transportation (TREM): With investments of BRL 1.8 Billion, this project conducted by the
Metropolitan Agency in association with the Public-Private Partnerships Unit and State’s Secretary of
Economic Development aims to be a new transport option to the population.
RMBH has one of the largest railroad junctions in Brazil, contemplating significant urban agglomerations
and some of the new centralities proposed by PDDI as well. The network that involves the TREM project has
around 505 km and is formed of 3 stretches that go through RMBH reaching 21 of the 34 municipalities present in
the region. The railroad network has parts that are used for passengers and cargo transportation, but its renewal
represents a valuable and viable alternative to be used for passenger transportation inside the RMBH. The
proposal is in stage of conclusion and modeling. The bid invitation is scheduled for the first term of 2014, and the
implementation and operation of the project for between 2016 and 2017.
This entire structure, allied to the others investments made or foreseen to the region, provide plenty of
opportunities in Vetor Norte, primarily in sectors lacking of infrastructure or with a great demand. The project
implementation, with its various investments, has leveraged the growth perspectives for local markets and
generated deficiencies in the supply of services and goods for certain sectors. In the following section, it will be
presented an overview of the local economy and an analysis of the main sectors in Vetor Norte’s region.
31
Success Cases – Aerotropolis and Industry-Airports in other cities
The Fort Worth International Airport, located between Dallas and Fort Worth, TX, is the second largest
USA’s airport in terms of area, and is an example of Aerotropolis. By helping businesses develop, Fort Worth
International Airport is the center of a complex products and raw materials distribution network, primarily for the
technology sector. The development of the multimodality model through interstate highways and railroads was
essential to the airport’s success, as it ensured an efficient access way to national and regional markets.






7 landing strips;
More than 50 Million consumers can be reached in less than 24 hours by trucks;
98% of the American population can be reached by truck in less than 48 hours;
Aerial access to all the main north-American markets in less than 4 hours and uninterrupted service for
more than 170 destinations all around the world;
Complete logistic support;
Operates 24 hours a day.
According to the Airports Council International (ACI), from January to May 2013, more than 24 Million
passengers transited at Fort Worth Airport, considered as the eight busiest airports in the world. In the year of
2012, Fort Worth kept its position with more than 58 Million passengers during the year.
One crucial point of development for Fort Worth was inauguration in 1997, of a FedEx branch. The impact
was direct and immediate, with the establishment of over 100 global companies in the area, such as Dell, AT&T,
Nokia, Bell Helicopters and Gulfstream.
Also located in Texas, at about 35 km away from Fort Worth International Airport, is Forth Worth Alliance
Airport, considered the first entirely industrial airport of the world. Services such as packaging, inventory
management, transport and cargo tracking are crucial points to attracting manufacturing and third part logistics
companies, as well as Airlines and distribution companies.




Alliance Center: Business complex of high density, including aviation companies;
Alliance Commercial Center turned to high technology companies;
High Technology Center;
Complex providing restaurants, shops and other services companies;
32
3.2 Economic Environment Overview
With approximately 20 Million inhabitants, Minas Gerais is the second largest Brazilian state in terms of
population and third in terms of economic relevancy, behind only of São Paulo and Rio de Janeiro. Also, Minas
Gerais GDP represents 9.3% of the national measure, according to investment bank Itaú BBA. The State stands out
for agriculture, mineral extraction industry and manufacturing industries, having the second largest industrial
park of the country, behindonly to São Paulo’s.
The central region of Minas Gerais, where RMBH is located, is the most populous in the State, containing 7
Million of inhabitants (35.6% of the total for the state). It is also, the most prosperous, being responsible for
46.6% of GDP, 60% of exports and 52.1% of formal employment in Minas Gerais, according to the Municipalities
Association of Minas Gerais (AMM). The sectors of most relevance in the region’s GDP are: metallurgical,
automotive, petrochemical, foods and beverages and mineral extraction industries. The region also counts with
centers of excellence for software and biotechnology research fields. Again, according to Itaú BBA, the
municipality of Confins has the highest GDP per capita in Minas Gerais: (BRL 239,774/inhabitant).
In the last decade, Vetor Norte has been passing through significant structural and economic
transformations, which in its majority have been driven by the State’s Government strategies turned to RMBH’s
development. Among the regional vectors, Vetor North is the one that received most investments from the State,
highlighting the Linha Verde, Administrative City and AITN’s development in Confins.
The year of 2005 was very important for Vetor Norte’s economic growth, marked by the beginning of works
in Linha Verde and AITN’s recovery, after the long distance flights being moved to Confins, in March 13th, 2005.
Consequently, the number of passengers in AITN in 2005 was 7 times higher than the 2004’s figure. Two years
later, in 2007, Government of Minas Gerais launched the Administrative City, a complex located near MG-010
highway, in the borders of Belo Horizonte, Vespasiano and Santa Luiza municipalities and which counted with
investments of BRL 1.2 Billion.
All these investments had immediate impact on the region’s economy, not only by generating direct Jobs,
in the Government’s projects, but also in the private initiative developments, attracted by the growth
perspectives in the region. The capital attraction suits the State’s plan of promoting a socioeconomic
development of Vetor Norte and RMBH, in an orderly way, as detailed in the PDDI.
The Metropolitan Agency and PDDI
The PDDI was developed aimed at RMBH’s development planning, including the roles of each vector in the
region, the relationship between the municipalities and different levels of centralities. The central aspect of the
plan for RMBH is the proposal of a metropolitan territorial restructuring that instead of just seeking immediate
solutions, go further to drive the structural transformations of the metropolis. Such restructuring aims to
anticipate the future social demands, taking into consideration the potentialities and particularities of each vector
of RMBH, as well as embracing issues such as the better use of the fields, and orderly growth. To that effect, its
implementation demands higher control and regulation of the public authority over the real estate market, in
addition to investments in infrastructure, an essential element to attract even more capital.
Another specific policy of PDDI for RMBH is based on the concept of network centralities. Aiming to reduce
the dependence of the central core of Belo Horizonte, it will be created new centralities in RMBH. These new
centralities are regions that have as objective to promote a better job, services and commerce distribution,
unburdening Belo Horizonte’s hyper center. This strategy replaces the current structure, counting with a
centralized convergent transport system, and going for a multimodal transportation network, improving urban
mobility. The integrated mobility network will promote the transport fluxes between the cities of RMBH,
recovering the roads system for passengers transport.
33
In this way, by adoption of a continuous process of joint development involving several public institutions
and society, the Metropolitan Agencies aims to conduct a metropolitan planning for RMBH.
The Agencies of Metropolitan are territorial entities linked to SEGEM, representing RMBH and Metropolitan
Region of Vale do Aço (RMVA). The Agencies are executive institutions that have administrative and financial
autonomy and acts in the intermediation between the municipalities, federal and state entities as well as private
institutions, in order to promote the sustainable growth of the metropolitan areas, through basically the
execution of the goals and priorities included in the PDDI.
One of the three new Metropolitan Centers (South, West and North) will be developed in Ribeirão das
Neves, city part of Vetor Norte.
This level of planning proposed by the State Government attracts investments from private initiative as far
as it identifies the economic particularities of each region and proposes to develop them, determining the goals
and actions that will be used to approach them. Consequently, each day more and more developments are
announced for the region. The next section includes details about main companies which are already established
or that have investments in development in the region.
34
3.3 Developments and Opportunities
3.3.1. Developments
Nowadays, approximately 75 projects are under development or have already been announced for Vetor
Norte’s cities. In this section, the main projects will be identified, firstly in an overview map and secondly, in a
detailed description.
Vetor Norte – Developments by Segment:
30
22
13
5
5
Legend
Housing Real Estate
Industry
Services
Aviation
Commercial Real Estate
35
Confins
1
Confins is one of the smallest cities of Vetor Norte by territorial area, but is the richest city of Minas Gerais in
terms of GDP per capita (240,000/inhabitant). Located 38 km away from Belo Horizonte, the municipality is
strategically located in the center of Vetor Norte and is very close to the main axis of development of the region,
the Tancredo Neves International Airport. The city has two main access roads, through the MG-424 and MG-010,
where two of the biggest projects of investment were developed by the Government of State: the Linha Verde
and Administrative City.
According to Copasa (Sanitary Company of Minas Gerais), the entire population benefits from the treated
water network. Confins has 5 schools, being 1 owned by the State, 2 by the municipality and 1 private one,
attending an estimated population of 6,300 inhabitants.
Besides Gol’s Aircraft Maintenance Center, the city also has a very important real estate under
development, the AlphaVille Confins. However, AlphaVille did not provide further data on the Project so it could
not be included in this Memorandum.
36
DEVELOPMENTS
1. GOL’s Aircraft Maintenance Center: Inaugurated on September 15th, 2006, the center operates in Tancredo
Neves International Airport and is responsible for the periodic maintenance of all Gol’s aircraft. It includes an
administrative office, two hangars, storage rooms, a warehouse and support areas.
Data
Investment: BRL 70 Million
Status: Operating
Area: Development: Gol Linhas Aéreas
Site: www.voegol.com.br
Complimentary Data:
Job Positions Created: 1,100 direct jobs
37
Jaboticatubas
3
4
1
2
Jaboticatubas is the largest city of Vetor Norte in terms of territorial area, presenting one of the lowest
demographic density rates of the region and an estimated population of 18,000. The total area is of 1,115 km².
Located at about 67 km NE from Belo Horizonte, the municipality has some of the most relevant real estate
developments of Vetor Norte, especially Reserva Real, property of Design Resorts Group. Departing from Belo
Horizonte, the main ways of access to Jaboticatubas are the MG-010 road, passing by Lagoa Santa and the MG020, passing by Santa Luzia.
Until 2011 (latest data available), only 52% of the population had access to treated water, mainly due to
the large portion of the population concentrated in the rural area and the great extension of the territory.
Jaboticatubas has 15 schools (3 pertaining to the state, 10 pertaining to the municipality and 2 private ones).
Data surveyed included 6 real estate developments in the municipality, with estimated investments of over
BRL 1.5 Billion.
38
DEVELOPMENTS
1. Reserva Real: The real estate development from Design Resorts Group is
composed by housing condos, commercial properties and a top-class infrastructure
to attend to visitors and condominium members.
Inside Reserva Real’s area are two other developments: Biovillas and Cidade da
Cultura.
Data
Investment*: BRL 1,5 Billion
Status: Completion scheduled for 2014 (some phases have been already completed)
Area: 14 Million m²
Development: Design Resorts
Site: www.reservareal.com.br
Complimentary Data:
Job Positions Created: 410 direct and 6,000 indirect jobs
*Values refer to the 3 projects (Reserva Real, Biovillas, Cidade da Cultura)
1.1 Biovillas: Real estate development as a standardized housing condominium
inside Reserva Real.
Data
Status: First units will be delivery in 2015
Area: 607,597m²
Site: www.biovillas.com.br
1.2. Cidade da Cultura: Another real estate development inside Reserva Real’s area. In the
future, it will be a business, tourism, entertainment and culture complex formed of
squares, an aquatic park, a theme park, a night club, an university city, an area dedicated
to enterprise offices, a commercial center, an exhibition center and parking lots
containing over 7,000 spaces.
Data
Status: Under construction
Area: 700,000m²; inside Reserva Real
Site: -
2. Villa Verde Park Residence: Real estate development marked by a housing land, with complete infrastructure.
Data
Status: Awaiting final approval
Area: 2,000,000m²
Plots: -
39
Development: Grupo KST/Brasiliana
Site: www.brasiliana.com
Complimentary Data:
Job Positions Created: -
3. Parque Cittá: Real estate development that includes a private housing condominium
with complete infrastructure on the margins of MG-010 inter-municipal road.
Data
Status: Operations start on February 2014
Area: 2,525,829m²
Plots: 950 fields of 1,000 m² each
Development: Construir DEVELOPMENTS
Site: www.construirDEVELOPMENTS.com.br
Complimentary Data:
4. Ecoville: Real estate development that includes a private housing condominium with
complete infrastructure on the margins of MG-010 inter-municipal road.
Data
Status: Completion scheduled for August 2014
Area: 934,313m²
Plots: 355 plots of 1,000m² each
Complimentary Data:
Job Positions Created: 71 direct jobs
40
Lagoa Santa
8
3
9
8
9
9
1
2
5
3
4
2
2
4
3
5
1
1
6
6
2
4
1
6
10
3
7
4
8
7
1
3
5
7
10
2
With a population of over 57,000 inhabitants and a territorial area of 229 km², Lagoa Santa is located to the
North of Belo Horizonte and can be accessed by the MG-010 road, just after AITN’s main entrance. With the
highest number of developments identified, Lagoa Santa is one of the most prosperous cities of Vetor Norte,
presenting a high GDP per capita (BRL 16,000/inhabitant). The entire urban population benefits from garbage
collection and treated water networks. There are 45 schools, being 5 of them owned by the State, 22 by the
municipality and 18 private ones.
Lagoa Santa is the only city of Vetor Norte that currently has an optical fiber network. In all, data surveyed
included 87 different relevant developments in the municipality, 31 of them being industries, 34 related to the
real estate sector, 19 services related and 3 of them aimed at the aviation sector.
Some big companies such as Localiza, Locamig, Madeirense, Dilasa and Vitória Group have offices in the
region of Lagoa Santa.
41
Developments
1. GC Development: Real estate development mixed of housing, commercial and services plots, located in the
center of Lagoa Santa.
Data
Status: Area: 50,000m², with a construction potential of 84,000m²
Development: Grupo Cidade
Site: www.gcidade.com.br
Complimentary Data:
2. Outeiro das Gerais: Real estate development located 1.5 km away from Lagoa
Santa and 10 km away from AITN.
Data
Status: Release date scheduled for August 2016
Area: 1,350,000m²
Plots: 532 plots varying from 525m² to 4,000m²
Development: Cidade Group
Complimentary Data:
3. Edifício Park Lund: Real estate development.
Data
Status: Area: Development: Partners Group and Caparaó Group
Site: www.parklund.com.br
Complimentary Data:
4. José Miguel Salomão: Real estate development consisting of a building in the
center of Lagoa Santa.
Data
Status: Release date scheduled for May 2015
42
Area: 4,000m²
Number of Apartments: 102 (of 2 and 3 rooms)
Complimentary Data:
5. Lagoa Santa Park Residence: Real estate development that includes a private
housing condominium with complete infrastructure.
Data
Investment: BRL 20.8 Million
Status: Delivery scheduled for August 2014
Area: Plots: 220 plots ranging from 525m² to 2.000m²
Complimentary Data:
Job Positions Created:-
6. Fazenda das Bicas: Real estate development that includes a private housing condominium with complete
infrastructure, located in the margins of Via Leste.
Data
Status: Approval scheduled for May 2015
Area: 651,200m²
Plots: 700 plots
Complimentary Data:
7. Condomínio 4 Estações: Real estate development composed of housing and commercial plots located 3km
away from Lagoa Central and 15 km away from AITN.
Data
Status: Release date scheduled for July 2014
Area: 660,000m²
Plots: 539 plots of 525m² each
Development: Cidade Group
Complimentary Data:
43
8. Golden Garden: Real estate development consisting of a housing
condominium.
Data
Status: Release date scheduled for June, 2014
Area: 984,224m²
Plots: 447 plots with more than 1.000m² each
Complimentary Data:
9.Villa Paradiso Park Residence: Real estate development consisting of a
housing condominium.
Data
Status: Approved – Construction will begin on March, 2014
Area:Plots: 215 plots ranging from 525m² to 868m² each
Complimentary Data:
10. Condados do Ipê: Real estate development consisting of a housing
condominium.
Data
Status: Operations will start in 2013
Area: Development: Construir DEVELOPMENTS
Complimentary Data:
44
1. Clamper Indústria e Comércio: Operates in research, development and manufacturing of Electrical Surge
Protection Devices and is considered a national and international reference in its segment.
Data
Status: In operation
Area: Development: Clamper Group
Site: www.clamper.com.br
Complimentary Data:
1.1. Biometrus Indústria Eletroeletrônica: Operates in development and manufacturing of electronic security
and control solutions, primarily through the use of biometrical technologies.
Data
Investment: BRL 321,000
Site: www.biometrus.com.br
Complimentary Data:
1.2. Nanum Nanotecnologia: Operates in research, development and manufacturing of nano-structured metallic
oxides as well as final products that uses these materials.
Data
Investment: BRL 12,500
Site: www.nanum.com.br
Complimentary Data:
2. Controltec Controles e Montagens Eletromecânicas Ltda: An automation engineering company which aims to
produce different kinds of steel boxes and panels, especial projects of automation systems and industrial controls.
Dados
Status: Operations start in the beginning of 2014
Area: Development: Controltec
Site: www.controltec.ind.br
Complimentary Data:
45
3. Geosedna Perfurações Especiais S/A: Company specialized in rotopercussive drilling for minerals research such
as nickel, gold, copper, platinum, diamond, phosphate and iron ore.
Data
Status: Operations start in the beginning of 2014
Area: Development: Geosedna
Site: www.geosedna.com.br
Complimentary Data:
4. Rede Tecnologia em Sondagens: Drilling company aimed at mineral research, performs drilling services of
diamond core drilling for the main mining companies in Brazil.
Data
Area: Development: Rede Tecnologia
Site: www.sondagens.com.br
Complimentary Data:
5. McNeilus Brasil: Production of concrete centers and mixers.
Data
Area: Development: McNeilus
Site: www.mcneilusbrasil.com.br
Complimentary Data:
Job Positions Created: 35 direct Jobs
6. Philips: Production of magnetic resonance and computerized tomography devices.
Data
Area: Development: Philips
Site: www.philips.com.br
Complimentary Data:
46
7. DiaMed Latino América S.A (Bio-Rad): Operates in the research, development, production and services of
laboratorial diagnosis. It is a subsidiary of Bio-Rad Laboratories, Inc. located in Hercules, California.
Data
Area: Development: DiaMed Latino América S.A.
Site: www.diamed.com.br
Complimentary Data:
8. Marangoni: Operates in various sectors of the tires industry. Its main activities are organized in six main
business areas controlled by different operating units.
Data
Area: Development: Marangoni
Site: www.marangonidobrasil.com.br
Complimentary Data:
9. Labtest: Its portfolio of products includes reagents and equipment dedicated to different types of clinical
analysis labs. Labtest develops produces and commercializes reagents kits.
Data
Area: 12,000 m²
Development: Labtest
Site: www.labtest.com.br
Complimentary Data:
10. Serv - Imagem Assistência Técnica Ltda: A technical assistance firm for image diagnosis equipment in Brazil. It
is the only company authorized to provide maintenance services for Philips VMI equipment.
Data
Area: Development: Serv Imagem
Site: www.servimagem.com.br
Complimentary Data:
47
1. Verdemar Supermercado & Padaria: Supermarket chain based in Belo Horizonte, aimed at a target audience of
classes A and B, specializes in luxury goods, noble items, seafood and others.
Data
Status: Area: Development: Verdemar
Site: www.verdemar.com.br
Complimentary Data:
2. Imballaggio: Manufactures a varied line of packaging and artifacts made of paper, supplying clients situated in
all states of Brazil.
Dados
Area: Development: Imballaggio
Site: www.imballaggio.com.br
Complimentary Data:
3. Minas Park Estacionamento: Parking lot with space for 1,100 vehicles and covered area.
Located near the access to AITN.
Data
Area: Development: Minas Park
Site: www.minaspark.com.br
Complimentary Data:
4. Hotel Ramada: Hotel located in Lagoa Santa, with a total number of 140 rooms.
Data
Area: 10,500m²
Development: Ramada
Site: www.ramadabrasil.com.br
Complimentary Data:
48
5. Hotel Super 8: Project of hotel containing four floors, two elevators and 100 rooms, 8 of them
provided with accessibility facilities.
Data
Status: Operations scheduled to begin on December 2013
Area: 3,400m²
Development: HotelPar
Site: www.hotelpar.com.br
Complimentary Data:
6. Hotel Promenade: An international standard hotel with modern infrastructure and 135 rooms.
Data
Status: Operations scheduled to begin in 2014
Area: Development: Construtora Dominus e Promenade
Site: Complimentary Data:
7. Hotel Comfort Confins: Hotel located in Lagoa Santa, 2 km away from
AITN, with more than 280 rooms.
Data
Area: Development: Grupo Caparaó, Grupo Partners
Site: www.caparao.com.br / www.gppl.com.br
Complimentary Data:
8. Hotel Hora: This hotel with 49 apartments and 3 independent commercial shops is located in
the center of Lagoa Santa.
49
Data
Area:Development: Grupo Partners
Site: www.gppl.com.br
Complimentary Data:
9. L´acqua Shopping: Shopping mall including an anchor store of 800m² and 34
stores of 40m² each, as well as food court facilities to attend the local population.
Data
Area: 5,000m²
Development: Vitória da União Group
Site: www.gvu.com.br
Complimentary Data:
50
1. Metropolitan Business Center: Real estate development including a conglomerate of industries and
enterprises. Among its facilities are wide large roads for traffic of trucks, a 300,000 liters water tank, an internal
optical fiber network, internet access, illumination and sanitation, three stages electrical network, selective
garbage collection and inter-municipal bus lines stops.
On the second stage of the project is planned a Commercial Center of 30,000m², including business towers,
hotels, a convention center, restaurants, a parking lot and 2 heliports.
Data
Investment: Status: Area: 339,216m²
Plots Area: 149.613m²
Development: Morada Imóveis
Site: www.metropolitanbc.com.br
Complimentary Data:
Job Positions Created: 2. Laguna Residence Mall: Real estate development that will combine, in the same building, 90 functional
apartments and a shopping mall.
Data
Status: Operations scheduled to begin in March 2015
Area: Development: Construtora Castor and Grupo Partners
Site: www.construtoracastor.com.br / www.gbbl.com.br
Complimentary Data:
Job Positions Created: 3. Wilton Amaral: Real estate development including a commercial building of 4 stories, 72 rooms, 11 stores and
a parking lot.
Data
Status: Area: Development: Grupo Partners
Site:www.gbbl.com.br
Complimentary Data:
Job Positions Created: 4. Distrito Industrial Carmo Couri: Real estate development consisting of logistics warehouses, located at about
4km from AITN.
Data
Area: 60,000m²
Development: -
Constructed Area: 16,000m²
Site: -
Complimentary Data:
Job Positions Created: 200 jobs
51
1. CTCA: The CTCA is a high-tech district intended to conglomerate education, research and development
institutions as well as companies from the aerospace, transport and military sectors. Activities of training and
development of professionals from these sectors will be held at CTCA.
Data
Investment: BRL 120 Million from Government (BRL 1.5 Billion from private sector)
Status: Construction started in June 2012
Area: 1.3 Million m²
Development: Site: Complimentary Data:
2. PAMA/FAB: The Aeronautic Material Park of Lagoa Santa (PAMA LS) is an industrial establishment that offers
services of manufacturing, inspection, maintenance and repair of a wide range of aircraft from Brazilian Air Force
(FAB). Besides helping in the control of airspace in Lagoa Santa and Confins, PAMA LS gives courses on equipment
and aircraft maintenance, according to the latest methods of revision, control and repairs.
3. CIAAR: The Instruction and Adaptation Center of Aeronautics was created in September 26th, 1983, to operate
in planning, coordination, control and execution of the plans and education programs related to the military
personnel adaptation for Brazilian Air Force.
52
Pedro Leopoldo
1
1
2
1
3
4
1
5
2
Located to the North of Belo Horizonte and in the East of Confins, Pedro Leopoldo is where some of the
largest companies from Vetor Norte are based, such as Precon and Lapa Vermelha Mining. With approximately
293,000 inhabitants and a GDP per capita of BRL 17,900/inhabitant, the city has 51 schools, being 9 of them
private ones, 10 owned by the state and 32 owned by the municipality. Also, the city is home for Fundação Pedro
Leopoldo, a higher education institution that offers graduate courses in Management, Accounting Sciences,
Logistics and Law, as well as several MBA and post-graduate courses.
According to Copasa, the majority of the population has access to treated water and round 83% benefit
from sewage treatment system.
In this Memorandum, 12 developments were surveyed in Pedro Leopoldo. The real estate investments
totalize BRL 54 Million, between actual and projected progress.
A vast number of companies are established in Pedro Leopoldo, such as Holcin, Cimentos Cauê.
Interciment, Suprema Serviços Industriais e PHV.
53
DEVELOPMENTS
1. Fundação Pedro Leopoldo: Education institution which offers the graduate courses of
Management, Accounting Sciences, Logistics and Law. At post-graduate level, it offers the
Professional Master’s degree in Management, the MBA in Finance and Controlling, the
MBA in Project Management, Strategic Logistics and Marketing.
Data
Investment: Status: In operation
Area: 20.000m²
Constructed Area: 5.000m²
Development: Site: www.fpl.edu.br
Complimentary Data:
1. Precon Industrial e Precon Engenharia: Produces pre-manufactured structures, architectural concrete panels,
viaducts, bridges, catwalks, hollow score slabs, crossties, asbestos-cement
roofing tiles, PVC tiles and others.
Data
Area: 500,000m²
Constructed area: 70,000 m²
Development: PRECON
Site: www.precon.com.br
Complimentary Data:
2. Mineração Lapa Vermelha: Its main activity is to extract and process limestone. Being one of the most
traditional suppliers for the national steelmaking park and all the local Market for civil construction, Lapa
Vermelha’s mines and facilities are located in Pedro Leopoldo and Confins, 40 km away from Belo Horizonte. The
company has also its own bus terminal connected to the central line of FCA (Center-Atlantic Railroad), with
capacity to transport 150,000 tons per month. There are two boarding platforms, one of them equipped with a
flow weighting system.
Data
Investment: Status: In operation
Area: Development: Site: www.lapavermelha.ind.br
Complimentary Data:
Job Positions Created: 170 direct and 60 indirect jobs
54
1. Central Park: Real estate development consisting of a residential area, located at
about 10 minutes from AITN and 20 minutes from the Administrative City of Belo
Horizonte.
Data
Status: Release date scheduled for December 2013
Area: 263,021m²
Site: http://www.construirDEVELOPMENTS.com.br/DEVELOPMENTS/2/central-park
Complimentary Data:
2. Portal das Acácias: Real estate development consisting of a residential area,
located at about 10 minutes from AITN and 20 minutes from the Administrative City
of Belo Horizonte.
Data
Status: Release date scheduled for December 2013
Area: 180,284m²
Plots: 261 plots with more than 360m²
Site: www.construirDEVELOPMENTS.com.br/DEVELOPMENTS/8/portal-das-acacias
Complimentary Data:
3. Fazenda Ipê: Real estate development that includes a private housing condominium with complete
infrastructure, a recreational area and a large green area.
Data
Status: Approval scheduled for April 2014
Area: 218,265m2
Site: www.construirempreeendimentos.com.br
Complimentary Data:
4. Portal das Acácias II: Real estate development consisting of a residential area, located at about 10 minutes
from AITN and 20 minutes from the Administrative City of Belo Horizonte.
Data
Status: Operations scheduled to begin on April 2014
Area: 163,826m²
Plots: 262 plots with more than 360m² each
55
Complimentary Data:
5. Residencial José João Teixeira: Real estate development consisting of a residential area located in the Center
of Pedro Leopoldo.
Data
Status: Approval scheduled for June 2014
Area: 134,755m²
Plots: 176 plots with more than 360m² each
Complimentary Data:
56
1. Fashion City Brasil: The FCTY - Fashion City Brazil is the first onestop shopping mall in the country and is the first fashion sector
integrated business center in America Latina. FCTY was developed to
meet a huge demand of the domestic fashion Market, which has
claimed for a structured where businessmen of the sector could
converge their interests and achieve the potential of the companies.
The shopping mall offers a complete infrastructure including a food court, a parking lot with over 1,800 spaces,
banking branches and others. It also includes a hotel with 150 rooms, a recreational area, a fitness room and a
conference center.
Data
Status: Construction is scheduled to begin on March 2015
Area: 205,000m²
Development: Precon
Site: www.fashioncitybrazil.com.br
Complimentary Data:
Job Positions Created: 1,500 direct and 5,000 indirect jobs
57
Ribeirão das Neves
1
Ribeirão das Neves is the largest city of Vetor Norte in terms of population (not considering Belo
Horizonte), with approximately 316,000 inhabitants. Located at about 35 km from Belo Horizonte, the
municipality has one of the lowest GDP per capita indexes (BRL 6,500/inhabitant). Approximately 100% of the
population benefits from treated water services and 80% benefits from basic sanitary services.
Some relevant companies that have established their offices in Ribeirão das Neves are Embrasil and
TelhaNorte.
Nowadays, 135 schools operate in the city, being 56 owned by the State, 54 by the municipality, 1 by the
Federal Government and 24 private ones.
58
DEVELOPMENTS
1. SIX Semicondutores: The company is a result of partnerships between Six Soluções Interligentes, BNDES,
BDMG, IBM, Matec Investmentos and Tecnologia Infinita WS-Intecs, to construct the most advanced
semiconductors manufacturing plant in the south hemisphere.
Dados
Investment: BRL 1.2 Billion
Status: Construction is scheduled to begin in 2015
Area: Development: SIX Soluções Inteligentes, BNDES, BDMG, IBM, Matec Investmentos and Tecnologia Infinita WSIntecs.
Site: www.sixsemicondutores.com.br
Complimentary Data:
59
Santa Luzia
1
2
1
Santa Luzia is one of the closest cities to Belo Horizonte, located 30 km away. Its population is of around
213,000 inhabitants, presenting one of the highest demographic densities in the region (862 inhabitants/m²).
According to Copasa, the entire population of Santa Luzia has access to treated water and about 90% benefits
from a sewage system. According to IBGE’s latest survey, Santa Luzia’s GDP per capita is of BRL 10,300/inhabitant.
Companies such as Café 3 Corações, Orthocrin, ASN Industrial, Fasal, Ingelza, ThyssenKrupp Metalúrgica
Santa Luzia, Weber Quartzolit, Roca, Cecrisa, Lafarge, Ambev and Vale are established in the municipality of Santa
Luzia.
There are 80 schools in the city, 33 of them being private ones, 21 owned by the state and 26 owned by the
municipality.
DEVELOPMENTS:
60
1. BH International Medical City (BHIMC) and Logistics Platform: The BHIMC is a unique venture for
development of an international health, education and research complex. It also includes a residential area and a
multimodal logistics platform.
Data
Investment (1st stage): BRL 500 Million
Status: Masterplan is under development
Total Area: 7 Million m²
Logistics Platform Area: 2.7 Million m²
Development: Medical City Ltda.
Site: www.medicalcity.com.br
Complimentary Data:
2. Hotel Super8: A four-story hotel with two elevators and 100 apartments.
Data
Status: Construction is scheduled to begin on April 2014
Area: 3,400m²
Development: HotelPar
1. Engefril: A manufacturing plant aimed to produce fridge equipment including continuous freezing tunnels,
evaporators, condensers, chillers and ice machines.
Data
Area: 22 mil m²
Development: Engefril
Site: www.engefril.com.br
Complimentary Data:
61
São José da Lapa
1
1
2
The municipality of São José da Lapa is located in North of Belo Horizonte, in the margins of MG-424 road,
after the exit to Confins. With approximately 21,000 inhabitants, the city presents a GDP per capita of BRL
16,000/inhabitant and a strong part of its economy turned to the aeronautic sector (as it is very close to the
AITN).
According to Copasa, 100% of the city’s urban population benefits from treated water and the entirety of
sewage produced is collected, although only 51% of it is treated, a very high level for national standards. The city
has 11 schools, two of them belonging to the State and 9 of them to the municipality.
Other relevant developments situated in São José da Lapa are the Laboratório Globo and Ical – Indústria de
Calcinação.
62
DEVELOPMENTS
1. IAS: The IAS is a very experienced company in the maintenance of motors and electrical, hydraulic and
pneumatic systems components for the aeronautic sector.
Data
Area: Development: IAS
Site: http://www.ias.ind.br/
Complimentary Data:
1. Norte Empreendimentos: The Project aims to implement a dynamic development that will attend the
population expectative in the North of RMBH. Involving the urbanization of 750 hectares, the project will permit
the development of 9.3 Million m² of constructed area until 2050, including 40,000 housing units, attracting more
than 100,000 new residents and creating around 50,000 new jobs. This future scenario represents the first step
towards approximating the population to their workplace.
Data
Investment: BRL 310 Million* (infrastructure construction costs)
General Sales Value: BRL 1.1 Billion
Status: Projects concluded
Total Constructed Area: 9.3 Million m²
Plots Area: 3.4 Million m²
Development: Norte Empreendimentos
2. Residencial Monte Bello: Real estate development that includes a private housing condominium with complete
infrastructure, composed by 640 plots with more than 360 m² of area.
Data
Status: Approval scheduled to October 2014
Area: 728,304m²
Plots: 640 plots with more than 360 m²
Development: Construir Empreendimentos
Site: http://www.contruirempreendimentos.com.br
Complimentary Data:
63
Vespasiano
1
2
3
4
6
7
3
5
1
2
5
4
6
1
Vespasiano has a total area of 71 km² and a population of 114,000 inhabitants, presenting one of the
highest demographic densities within Vetor Norte. Located to the North of Belo Horizonte, the city benefits from
the investments made by the Government of Minas Gerais regarding logistics infrastructure and has since then,
attracted huge amounts of investment. The GDP per capita of the city is of BRL 12,500/inhabitant.
According to Copasa, the entire population of Vespasiano benefits from treated water and the entirety of
the sewage produced is collected by the system, although only 64% is treated. The city counts with 55 schools, 13
of them being private ones, 12 belonging to the state and 30 belonging to the municipality.
Several big companies are established in Vespasiano: Soecon, Tenda, BMS, Bramex, Hermes Pardini,
Sandvik, Premo, DDM, Convap Engenharia and MDE Manufatura e Desenvolvimento de Equipamentos.
64
DEVELOPMENTS
1. Alphaville: Real estate development that includes residential and commercial plots.
In a total area of 873,283m², there are 542 residential plots varying from 450m² to
791m², 14 commercial plots of 1.000m² each and 1 plot of 12,000m² destined to the
construction of an education institution or a shopping mall. It will also include a
leisure club offering spas, a gym and 9 theme squares inside the condominium.
Data
Status: It was released in 2002
Area: 873,283m²
Complimentary Data:
Job Positions Created: 325 jobs created during the construction and 2,168 during the occupation.
2. Serra do Curral Residence: Real estate development in the format of a residential building with 2-room
apartments plus suite and 2 floor plants alternatives. Altogether there are 40 apartments ranging from 71 m² to
86 m².
Data
GENERAL SALES VALUE: BRL 12 Million
Status: Construction is scheduled to end on December 2013
Area: Apartments: 40 apartments of 71m² to 86m²
Development: Alsa Engenharia
Site: www.alsaengenharia.com.br
Complimentary Data:
3. Serra do Cipó Residence: Real estate development in the format of a residential building with 5 floor plants
alternatives.
Data
GENERAL SALES VALUE: BRL 17.5 Million
Status: Area: Apartments: 36 apartments of 3 or 4 rooms
Complimentary Data:
4. Serra da Canastra: Real estate development in the format of a residential building with 11 apartments of
approximately 200m², 2 suites and 2 semi-suites, as well as recreational area and gym room.
Data
Status: Area: Apartments: 11 apartments with approximately 200m² of area
65
Complimentary Data:
5. Serra da Gandarela: Real estate development in the format of a residential building.
Data
GENERAL SALES VALUE: BRL 4.3 Million
Status: Area: Apartments: 20 apartments
Complimentary Data:
6. Serra das Aroeiras: Real estate development in the format of a residential building.
Data
Status: Area: Apartments: Development: Alsa Engenharia
Complimentary Data:
7. Serra dos Cocais: Real estate development in the format of a residential building.
Data
Status: Construction scheduled to end on December 2013
Area: Apartments: 18 apartments of 3-rooms
Complimentary Data:
66
1. Cimentos Liz: A cement industry that operates nation-wide.
Data
Area: Development: Cimentos Liz
Site: www.cimentosliz.com.br
Complimentary Data:
2. Tecnometal: The Company operates in the industrial mechanics segment, developing projects, manufacturing
and repairing equipment and components. Tecnometal Group produces bulk handling systems, mineral
processing equipment and parts and components for different Brazilian industry segments.
Data
Area: 170,000m²
Development: Tecnometal
Site: www.tecnometal.com.br
Complimentary Data:
3. DELP Engenharia Mecânica: Operates in development and implementation of projects from basic engineering
to manufacturing and delivery of equipment. Nowadays, DELP focuses on the Oil&Gas, Energy, Naval and General
Industries.
Data
Area: 300,000m²
Constructed Area: 33,479 m²
Development: DELP
Site: www.delp.com.br
Complimentary Data:
Job Positions Created:
4. Belgo Mineira Bekaert Artefatos de Arames Ltda: Metallurgical industry that produces strong steel cables and
wires for the entire South America’s market.
Data
Investment: Expansion plan of US$ 3 Million per year
Area: Development: Belgo
Site: www.belgobekaert.com.br
67
5. Orguel Plataformas: Orguel is a manufacturer and rental company for aerial work
platforms.
Data
Area: Development: Orguel Group
Site: www.orguelplataformas.com.br
Complimentary Data:
6. Mecan: Metallurgical company which manufactures machines and equipment
aimed at the Construction, Oil&Gas and Mining sectors.
Data
Total Area: 350,000m²
Development: Grupo Orguel
Site: www.mecan.com.br
Complimentary Data:
Job Positions Created: 1,000 jobs
68
1. Hotel San Diego Express: Hotel managed by Arco chain, with 85 rooms.
Data
Area: 4,224m²
Development: Rede Arco
Site: www.hoteisarco.com.br/pt/index.php
Complimentary Data:
Job Positions Created: 23 direct e 177 indirect jobs
2. Hermes Pardini: The company has 56 branches in the cities of Belo Horizonte, Betim, Contagem, Santa Luzia,
Sabará, Nova Lima, Sete Lagoas, Pedro Leopoldo and Vespasiano. Besides that, Hermes Pardini has stood out in
the national market of laboratory support, being one of the top-three labs in the country in terms of revenues
and volume of analysis. Among the services offered are: clinical analysis; image diagnosis; vaccines; functional
tests; human and veterinary genetics. The administrative offices of the company are based in Vetor Norte.
Data
Status: Concluded
Total Area: 103,000m²
Development: Hermes Pardini
Site: www.hermespardini.com.br
Complimentary Data
69
IV – Investor C.P.’s Opinion
In this section, Investor Consulting Partners offers an analysis of Vetor Norte under the investment
opportunities vision. To do so, two basic assumptions were adopted, without which no conclusion can be
extracted from the data hereby presented. The first of them concerns the continuity of general Government of
Minas Gerais’ policies, specially the PDDI, with the development and strengthening of the centralities and the
intention of developing an Aerotropolis surrounding AITN.
The second assumption is that, even though the Brazilian and global macroeconomic indicators influence
significantly the regional economic performance, the microeconomics is more determinant for its performance
than the global or national numbers. Even if the country passes through a period of vigorous growth, it is possible
that some less competitive regions present performances in contrary of the national average (GDP reduction,
increase of unemployment rate, deflation, etc.) and the inverse is also true. Examples of this phenomenon can
easily be found in such a diverse and of continental proportions country as is Brazil, where, at any period of time,
some states and municipalities prosper significantly, while others present a deterioration of their economic
context. Such a situation can be found within municipalities of the same state or region as well.
According to the assumptions and based on the data presented, interviews with businessmen and
professionals related to the Government, it was developed an analysis of Vetor Norte as an investment
opportunity. Some factors that can be possibly determinants in the identification of either positive or negative
trends to the regional economy were cited in the analysis.
The impacts of PDDI’s continuity go far beyond the income generation in the region through governmental
works. The maintenance of the development policy for RMBH, as well as the implementation of construction
developments and concrete measures to achieve the goals established, create a political stability scenario and
enable the reduction of risks in the region, favoring new investments. The proposal of developing an IndustryAirport and subsequently, an Aerotropolis in the region, also favors the installation of aviation related companies
or which benefits form the agility and convenience resultant of the airport physical proximity. Nevertheless, it is
worth mentioning that neither Vetor Norte’s performance nor the first assumption here established are based in
the success of implementation of an Aerotropolis surrounding AITN. The maintenance of this goal, and the
Government’s compromise to its achievement through the investments implementation in the region, should be
continued as sufficient to attract developments in related areas, providing the regional economic growth, the
strengthening of North’s centralities and, eventually, the development of a metropolitan center based around its
main airport, AITN.
If the number of developments in the region is, in certain way, a good indicator of the private initiative
confidence, the region presents a very favorable scenario for new investments. Investor has identified, along with
AV Norte, 133 relevant developments spread through the seven cities of the region, including pre-operational
businesses and projects in development. Among these, 54 are housing real estate developments, totalizing more
than BRL 1.2 Billion, being the majority of them still in pre-operational stage. The other developments are
distributed between the Industrial (45), Services (22), Commercial Real Estate (8) and Aviation (4) sectors.
The attraction of new businesses to the area itself is a very important ally for regional growth and
development of new centralities. The opportunity and income generation in Vetor Norte, favored by the real
estate developments have created the ideal conditions for the launch of new real estate developments turned to
local residents, attracted by the opportunity, the contact with nature and the ease of access. Some of the largest
companies in the State have already launched or are making developments of this kind in the region, most of the
time with great success of sales. The success tends to attract even more developments to the local, which,
eventually, should balance the demand and supply for housing properties.
If on one hand the available space for real estate developments is increasingly restricted, in the other hand
there is still plenty of space for complementary services that certainly will be demanded by a high number of new
residents. The demand for services related to health, like hospital, clinics, and laboratorial and diagnosis centers;
or education, tend to grow in the following years. Few developments were identified in these sectors, and some
70
of them are still in stage of conception. With the release of so many housing real estate developments in the next
two years, great opportunities of investment are expected in this area.
In the industrial sector, shall it be in the manufacturing of high value added products, in the capital goods,
consumer goods industries or in the segment of parts and services for the aviation sector; a more accelerated
growth in the region depends more on the Industry-Airport implementation itself, with fiscal incentives to the
establishment of these companies around AITN, than in others sectors. Still, 14 developments for these sectors
were identified in the region, six of them that are still under implementation, totalizing more than BRL 1 Billion.
This tendency will probably take other industries to the region, looking for synergy gains, within its value chain.
In terms of macroeconomics, we did not take into consideration any big change in the global or Brazilian
economic scenarios. If on one hand the structural issues of the Brazilian economy have weighted negatively in the
country’s development, in the other hand there are not any evidence of any severe crisis or imminent risks,
subject only to inflation, which must be closely monitored in the following years. In the international
environment, the main issues of concern with greater potential impact in Brazil refer to primarily: (i) the
insolvency of some countries from Euro Zone and the economic recovery of the block; (ii) the political standstills
regarding the budget in United States; (iii) fears regarding the north-American’s economy recovery and (iv)
Chinese economic growth. Generally speaking, we do not believe that none of these points will prejudice in any
way the moderated growth scenario forecasted by IMF and some of the key market analysts. That said, unless
something really catastrophic occurs, like a default of USA’s debt, a scenario which was not considered, we do not
believe that the global economic scenario is capable of interrupting the growth tendencies of Vetor Norte for the
next two or three years.
Finally, bearing in mind that the development plans of Vetor Norte traced by the Government of State tend
to go in the same direction and that the local economy presents differentiated features that points to a growth
tendency in the next years, we believe that the region presents good opportunity of gains for businessmen and
investors. Of 133 developments surveyed in the region, 69 are in the pre-operational stage, the majority of them
being in stage of release or implementation. This means that even between companies that do not operate yet in
the region, the vast majority of the developments surveyed are already generating demands, income and
opportunities. The attraction of new developments tends to power the virtuous cycle of projects in the region
generating opportunities from the most various areas. The chances of success in the Aerotropolis implementation
are real taking into consideration the confirmation of the economic growth tendency in the region, sustained by
the data hereby included. Seen in these terms, it is likely that Vetor Norte will be the region which offers the most
varied and singular investments opportunities in Brazil. Investor believes that Vetor Norte will be consolidated, in
the new 10 years, as one of the main metropolitan regions of investment attractions in the Country.

Memorandum of Investments Vetor Norte

Transcrição

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