The Legislative Chamber of the Federal District has approved a law to transfer nine public properties to the Bank of Brasília, and the bank president suggests creating a real estate investment fund for these assets.
The Legislative Chamber of the Federal District approved a project allowing the transfer of nine public properties to the Bank of Brasília (BRB) with a vote of 14 in favor and 10 against. The measure is now waiting for the signature of Governor Ibaneis Rocha. The president of BRB, Nelson Antônio de Souza, expressed in an interview that the preferred approach for managing these properties is to establish a real estate investment fund, which would allow for selling shares of the assets to qualified investors without impacting the federal government's fiscal responsibility laws.
Souza emphasized that the creation of a real estate investment fund (FII) is strategically advantageous as it can provide profitability for investors while ensuring that the assets are maintained and managed effectively. By doing so, it can avoid creating immediate liabilities or adjustments to the fiscal rules governing the District of Brasília. This approach is also designed to attract private investment into public assets, enhancing their economic contribution.
The concept of real estate investment funds has been around since 1993 in Brazil, regulated by the Securities and Exchange Commission (CVM). Such funds are typically composed of selected properties administered by financial institutions, targeting qualified investors who are looking for more stable returns. The initiative could potentially lead to increased development around these public assets and facilitate better financial management for the government, thus aligning public interests with investment opportunities.
