The economy in Brazil is strong. It has great potential for further growth because of its almost limitless resources. I see an opportunity to get in on the ground floor of Brazil’s Next Big Thing.
Here, you can buy with a down payment of $2,400 and monthly payments of $260.
Fortaleza, with a population of 3 million people and a glimmering boardwalk, is the capital of Brazil’s Northeastern province of Ceara. Thanks to miles and miles of Brazil’s best beaches, this is Brazil’s biggest domestic tourism destination.
This area has outgrown the rest of Brazil over the past 15 years. Now government policy calls for the creation of a mega manufacturing and export hub just outside Fortaleza. That’s where we have this ground floor opportunity.
The Zone for Processing of Exports (ZPE) was approved in May 2010. This is a duty-free zone established adjacent to the port of Pecem and 40 minutes west of Fortaleza. The scale is massive; the zone is more than 10,500 acres. Businesses located within this area will pay practically no taxes on inputs purchased…and finished goods exported. There will also be less bureaucracy and customs procedures for its exporters. In fact the ZPE will have its own customs office. It will also have its own cargo airport and the world-class port is getting a major upgrade.
Pecem port had already been slated for a multi-billion dollar investment. The ZPE announcement means that an additional 200 export oriented companies are expected to set up extensive operations here.
This isn’t just a duty-free port zone. It’s part of a major integrated infrastructure plan. A series of canals are being built to bring water north from Bahia to improve agricultural productivity in the hinterland. Pecem will be the hub for a new national railway system. New shipping routes are opening up with Africa, Europe and Asia. The cargo airport will ship goods all around the world. Pecem’s location is strategic…Brazil’s closest trade hub to North America, Europe, Africa and China (via the Panama canal).
Just over two years after this announcement, you might expect the bureaucrats would still be working on the plans. Not with this project. It’s full steam ahead. Billions of dollars are being invested.
This is a region with a strong manufacturing and shipping tradition. But the manufacturing has been distributed in small towns and suburbs of Fortaleza like Maracanau and Pacatuba. The distribution is not as efficient as it could be. Not scalable enough to match this region’s potential and ambition.
Pecem is set to become a world-class integrated manufacturing hub. The new world-class port will get product out. Inputs like oil derivatives, steel and electricity will be made onsite. There will be new manufacturers. There will be some consolidation from other locations in the region. There’ll even be four enormous conveyor belts that run for seven-and-a-half miles through the facility.
The steel plant and oil refinery will operate to the highest international standards. What these produce will be used as inputs in manufacturing or exported. Brazil’s federal government is following through on its commitment to incentivize balanced regional development. The major urban areas of the south, like Rio and Sao Paulo, are bursting at the seams. Long left behind, the Northeast is playing catch-up with explosive pace.
Volume at the Pecem port this January was 82% up on January last year. An additional $1 billion is being invested in the port right now. This is the third expansion. Each time an upgrade is complete, demand makes another leap. One of billionaire Eike Batista’s power plants is up and running. No sooner was it built than he started work on another. Brazil’s richest man (the world’s seventh) is investing billions of his money here. Production of wind power turbines, cement, and fertilizers is already underway.
Of the hundreds of thousands of jobs that will be created, tens of thousands will be very highly skilled and highly paid. Companies are aggressively recruiting. Pecem has to compete in a global labor market for the skills it needs. Engineers, managers, chemists…they’re all in demand.
The opportunity we have is to buy where these folks want to live. And wait…for three or five years…
The gated, amenity-rich community where we can buy a lot with $2,400 down and monthly payment of $260 has been painstakingly designed with this market in mind. It’s 10 minutes from where these professionals will work and five minutes from a stunning white-sand beach and charming beach town.
Members of Real Estate Trend Alert can buy off-market at special members-only pricing and terms. In this video I explain how these “off market” deals work. I’ll be sending my report about this opportunity to members early next week. Get on the list to receive my full report.
Editor’s Note: Learn more about Brazil and other countries in IL’s daily postcard e-letter. Sign up for these free daily postcards here and we’ll also send you a free report: Brazil: Sultry, Sexy and Shamelessly Cheap.