We operate in all stages of the real estate development process. Our activities include evaluating business opportunities, acquiring land, developing the project, executing works, obtaining licenses, permits and government approvals, as well as marketing, sales and administration. We aim to create projects that combine tradition and modernity, in a unique and innovative way.
Most of our projects in this segment were developed in and around São Paulo. Currently, this business is focused on: (i) sale of (ia) existing inventories of Fazenda Boa Vista, destined for high income in the interior of the state of São Paulo, which includes complete infrastructure for sports, leisure and services, including a hotel, whose luxury is unmatched in Brazil, according to an article in the newspaper O Globo; and (i.b) units of the launch of Fasano Cidade Jardim, a residential development connected to Shopping Cidade Jardim; and (ii) launch of the projects (ii.a) Boa Vista Village, a residential, commercial and leisure complex adjacent to Fazenda Boa Vista; Thus, our pipeline for this sector is anchored in luxury developments already consolidated in the national scenario.
We have been developers and operators of shopping centers since 1999 and have focused our projects on niches. This results-generating unit comprises (i) the Shoppings Malls business unit: which consolidates the operations and services (administration, parking and energy supply and telecommunications) for malls; (ii) Cidade Jardim Fashion (e-commerce); and (iii) Retail: operation of international luxury brands.
The growth in Recurring Income is based on (i) increase in the commercialization rate of GLA (not CAPEX), mainly in Manaus and Salvador, (ii) expansion of GLA in consolidated projects, CFO and SCJ to be developed in areas that is already part of the Company’s land bank, with reduced incremental CAPEX and low risk of execution because they are already anchored in mature enterprises, and (iii) launching of a new shopping center model, Cidade Jardim Shops, in the Jardins district of São Paulo, with about 6,500 sq.m of GLA. Additionally, the Company is working on a new project on Faria Lima Avenue, at Itaim neighborhood in São Paulo, with approximately 15,500 sq.m of GLA.
Hotel and Restaurants operations under the Fasano brand, includes 7 hotels in operation (São Paulo, Rio de Janeiro, Fazenda Boa Vista, Punta del Este, Angra dos Reis, Belo Horizonte and Salvador), as well as 27 restaurants and bars in 7 cities (São Paulo, Porto Feliz, Rio de Janeiro, Brasília, Angra dos Reis, Punta del Este, Belo Horizonte and Salvador).
The potential growth of this division, in short term, will derive from 3 new hotels in Brazil (Trancoso and São Paulo, Itaim and Cidade Jardim), where we will also develop new restaurants activities. In the medium and long term, we intend to internationalize the operations, having the United States and Europe as a destination for our additional operations.
Recently, we expanded our operations to the United States. We launched in New York the Fasano Fifth Avenue, a new development with private apartments Private Residences and Club Residences (multi-owned), and the Fasano New York Restaurant on Park Avenue. The start of activities is scheduled for 2020, subject to obtaining customary licenses for this type of operation.
The São Paulo Catarina Executive Airport, which opened its first phase on December 16th, 2019, is the first executive airport in Brazil, thought about 10 years ago, when an opportunity was identified to contribute to the improvement of infrastructure and business aviation services. With a structure and service different from the current offer in Brazil, the São Paulo Catarina Executive Airport has a 2,470-meter long runway, 6,000 sq.m of hangar and 21,600 sq.m of yards. The Company is currently working on the internationalization of the São Paulo Catarina Executive Airport, in order to make the São Paulo Catarina Executive Airport the gateway for the entry of passengers and investments in Brazil.
The business model we have adopted is similar to solutions implemented in cities such as New York, London and Paris, which, after developing airports exclusively dedicated to business aviation, helped to contour the capacity bottleneck of commercial airports, the same difficulty observed in the two main airports in the Metropolitan region of Sao Paulo.