Doria's first auction of real estate assets fails, selling only 22%.
Another embarrassing failure for the mayor of São Paulo; the first auction of his administration to leverage resources from the real estate sector sold only 21,7% of the titles offered by the city hall, which reduces the amount of funds to be used for investments in São Paulo; of the R$ 293,9 million that were put up for auction, only R$ 63,9 million were sold.
SP 247 - The first auction under João Doria's (PSDB) administration to leverage resources from the real estate sector flopped. Only 21,7% of the titles offered by the city were sold, reducing the amount of funds available for investments in São Paulo.
Of the R$293,9 million that were put up for auction, only R$63,9 million were sold. All the assets relate to the Faria Lima Urban Operation and found only one interested party, the brokerage firm Socopa, which acquired 9.781 securities at auction in mid-September.
Real estate companies buy these certificates, called Cepacs (Certificates of Additional Construction Potential), to be able to build taller buildings with more units than permitted by zoning laws, as well as to increase the built area of the property.
In return, the city government invests the proceeds from the sale of Cepacs in Urban Operation areas, that is, zones that the municipality wishes to modernize. There are four: Centro, Água Branca, Água Espraiada, and Faria Lima.
In the case of Faria Lima, the money has enabled projects over the years such as the construction of two tunnels, the transformation of Largo da Batata, and the construction of housing complexes in the Real Parque favela.
With low sales, projects that have been dragging on for years may have their timelines extended even further, such as housing in the Coliseu favela, in Vila Olímpia.
The information is from Report by Guilherme Seto in Folha de S.Paulo.