Ocupantes, The Tenant Rep Company, coordinated the sale of the last development site fronting the sea of Ipanema Beach, Rio de Janeiro. The transaction resulted in the highest value ever per square meter in Brazil. Through an international partnership, Ocupantes was retained by Exxon Mobil, owner of the Esso brand in Brazil, to coordinate the process of disposal of excess properties within its Brazilian portfolio. Among these, Ocupantes moved ahead with the sale process f on site that still operated as a filling station, soon to be de-activated.  The site, with 760 m², is located on the Vieira Souto Ave., in Ipanema, one of the most prime addresses in Rio, facing the sea and next to a park known as Jardim de Alá (Alah’s Garden).  (See red outline on the photo).

In order to maximize the sale proceeds, Ocupantes, together with Exxon, opted to undertake an informal tender or Bid Process, under the coordination of Ocupantes.
First, Ocupantes undertook a study and best use analysis to identify the site’s vocation (residential, commercial, hotel/flat, retail). The result pointed to a residential development, in light of the high demand for very high standard apartments in the region as well as the fact that this was the last remaining developable site in Ipanema that faced the sea. Considering this scenario, Ocupantes appraised the land adopting discounted cash-flows from a developer’s viewpoint. In this way, Ocupantes was able to identify maximum values that could be attained in order that a residential development could succeed at that location.

Ocupantes’ sale team began the Bid Process by inviting several companies, national and international, to take part. Among the invitees were developers and real estate investors as well as individuals who might have interest in the property.  After the first phase of publicizing, the parties interested in bidding registered their interest and received an RFP containing all the information pertaining to the transaction, such as site characteristics, procedures, site documentation and minimum price, define don the basis of the appraisal undertaken.

The result could not have been better.  All who registered presented proposals in accordance with the established rules, in sealed envelopes.  Ocupantes carefully analyzed the documentation of the prospective buyers and chose, together with Exxon, the best financial proposal. In June 2007, following several hurdles and procedures, and at a price 24% higher than the minimum price, the transfer was completed to an investor from Rio’s real estate market. The price per meter is considered the highest ever reached in Brazil.