MRV invests R$2 billion in the biggest project in its history, with 11 thousand apartments By Estadão Conteúdo

2023-11-06 10:10:34

© Reuters. MRV invests R$2 billion in the biggest project in its history, with 11 thousand apartments

MRV (BVMF:) started the biggest project in the company’s history and one of the biggest ever seen in the city of São Paulo. The developer is launching the Cidade Sete Sóis project, with 11 thousand apartments in more than 65 buildings to be built over the next ten years in Pirituba, in the north zone. The expectation is to earn R$3 billion from sales over this period. The total investment will be R$2 billion.

The land is gigantic and measures 1.7 million square meters, the equivalent of 230 football fields. It was purchased in 2011 by Companhia City, a century-old company that was in charge of subdivisions that created famous neighborhoods in the capital of São Paulo, such as Pacaembu, Alto da Lapa and Alto de Pinheiro, for example. The project licensing took around ten years. The City ceded the land to MRV, remaining a minority partner in the project.

“This is a large-scale business. Few companies in Brazil have this investment appetite and technical capacity for execution”, says the co-president of MRV, Eduardo Fischer, in an interview with Broadcast (Grupo Estado’s real-time news system). “This is a project that hardly anyone will be able to repeat. Not only because of its size, but because of its quality”, he adds.

The motivation for MRV to embark on the project was the opportunity to build on such a large plot of land – which is increasingly scarce in large cities – combined with the view that there is an unmet demand for housing among low-income people. in this part of the city.

The investment also symbolizes a renewal of MRV’s commitment to Minha Casa Minha Vida (MCMV) in the long term, as 80% of the apartments will be included in the program. “‘Minha Casa’ is close to completing 15 years. It even changed its name during the Bolsonaro government, but the dynamics were practically the same. We trust in the sustainability of the program in the long term”, says Fischer.

The launches of the new venture will begin in the second half of November. 1,000 units are planned in 2023, 2,000 in 2024 and 1,000 in 2025. The first apartments will be around 34 m² to 45 m², with prices in the range of R$230,000 to R$330,000. The focus is on consumers with a monthly income starting at R$3,000, with the right to financing for up to 420 months via FGTS, with an interest rate in the range of 7% to 8% per year.

Cidade Sete Sóis in Pirituba will also reserve space for commercial areas. 25 stores (with 9 thousand m²) are planned on the ground floors of some buildings, in addition to seven commercial lots (around 20 thousand m² in total) for larger commercial establishments, such as supermarkets and gas stations, for example. MRV can act in the sale of these commercial areas or seek a partner specialized in the segment. “The objective is to guarantee a mix of retailers with products and services that meet the demands of this micro-region that is being created”, says the group’s director of real estate development and engineering, Ronaldo Motta.

New challenges

Until now, the biggest project carried out by MRV was Grand Reserva Paulista, with 7,200 units and 25 towers in the same neighborhood, in Pirituba. The project was launched in 2016 and completed construction in 2022. The land, however, was “only” 180 thousand square meters. This time, the area is ten times larger.

MRV will spend R$300 million on infrastructure and urbanization works, including construction and expansion of water supply and sewage collection networks, in addition to the revitalization of the Cantagalo stream, which runs through the land. Another important point will be the opening of 15 kilometers of streets, including a connection between Raimundo Pereira de Magalhães and Doutor Felipe Pinel avenues. Eight kilometers of cycle paths are also planned.

Not to mention that the region is marked by small hills. Earth movement throughout the construction period will require thousands of trucks to travel. Use of the area is also limited. Practically half of the land (750 thousand m2) is covered by native forest that will be preserved, as required by law. “We are having to go through learning to integrate some varied disciplines”, says Motta.

New brand

The name “Cidade Sete Sóis” will not only be used in the Pirituba project. It is being transformed into a brand associated with a quality standard that will be repeated in other cities. There are already projects along these lines under development in Salvador, Rio de Janeiro and São José dos Campos (SP).

The “seven suns” are a reference to the seven sustainable development objectives, which include concepts such as preservation of green areas, safety for residents, urban development, mobility, convenience, technologies and good neighbor policies.

In the case of Pirituba, the subdivision will have around 20 squares with sports courts, skate parks, children’s playground, outdoor gym, spaces for pets, wireless internet signal, security guards and cameras. The sidewalks will be wide to encourage walking and there will be no walls separating the development from the rest of the city.