News Release

The Carlyle Group Makes Strategic Investment in Brazilian Real Estate Developer Scopel


São Paulo – Global private equity firm The Carlyle Group and Brazilian real estate developer Scopel today announced they have formed a partnership whereby Carlyle will make a significant investment in Scopel. This investment will be made by Carlyle’s Latin America Real Estate Team. Financial terms were not disclosed.

“We are pleased to partner with Scopel, which is well established and highly regarded in Brazil. This investment will foster Scopel’s expansion in Brazil, enabling it to take on more long-term development projects, which it specializes in,” said Eduardo Machado, Managing Director and Head of Carlyle’s Latin America Real Estate Team, which was established in September 2006.

Formed 41 years ago, Scopel concentrates its operations in the State of São Paulo, in more than 45 municipalities, with the goal of expanding into other states and regions of Brazil. Scopel has significant experience in the residential sector, focusing on middle and low income housing as well as first-time homebuyers.

Since its inception, Scopel has launched 120 developments in more than 80 million square meters of urbanized area, totaling 50,000 parcels of land. In recent years Scopel has sold 5,000 parcels per year, which is expected to increase considerably following this partnership with Carlyle.

Eduardo Scopel, Managing Director and Founder of Scopel, said, “One year ago we started a growth and restructuring process with the support of UBS – Pactual. We also initiated the process of merging with DESIM Urban Development, a long-term partner of ours, and taking over its operations, which is now complete following this investment by Carlyle. This is a natural consequence of the convergence of interests, working philosophy, tradition and mutual respect, which will give continuity to our projects and foster strong growth.”

“The creation of Carlyle’s Latin America Real Estate operation will capitalize on Brazil’s economic growth. We bring capital to foster the growth of real estate development companies with solid foundations, sound management and expansion prospects,” said Eduardo Machado.

This is The Carlyle Group’s second investment in Brazil. Also in 2007, Carlyle/Riverstone Renewable Energy Infrastructure Fund made a significant equity investment in CNAA, which is building four ethanol plants with Santa Elisa Vale.

*  *  *  *  *


Scopel, which concentrates on Quality Land Development, develops feasibility studies, concepts of urban projects, licensing, marketing planning, infrastructure and receivables managing among other activities.

Scopel works with land owners in regions where there is an urban development potential. Scopel becomes an associate with the owners, develops the project and invests in infrastructure and sales. Each case has its own characteristics, depending on the region, local conditions, area objectives and the partnership established.

Based on the information and the company’s experience, the project objectives are defined including environmental preservation areas, the lots, roads, sidewalks, water supply, sewage and possibly water treatment. These are then donated to the community and to the utility companies.

Two noteworthy current Scopel projects are: Ibirapitanga for its environmental aspects and Santa Maria in Granja Viana.

# # #