Large economic groups in real estate restructuring: cyrela Brazil Realty's performance in the metropolis of São Paulo

• Grant number: 22/07048-8
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: September 01, 2022
• End date: August 31, 2023
• Field of knowledge: Applied Social Sciences - Urban and Regional Planning - Fundamentals of Urban and Regional Planning
• Principal Investigator: Maria Beatriz Cruz Rufino
• Grantee: Amanda Vargas das Virgens
• Host Institution: Faculdade de Arquitetura e Urbanismo (FAU). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

The great sophistication of financial capital organization structures makes it possible to direct capital to sectors that are most profitable. In the Brazilian context, the emergence of large publicly traded incorporators points out, the transformation of capitalist relations of production and the insertion of these relations in the economy international market, which is evident in the formation of Large Economic Groups (LEG). It happens in a more comprehensive real estate restructuring context, which includes a strategic business reorganization within and beyond the real estate, reflecting directly on the construction of urban space. This work aims to analyze the process of Brazilian real estate restructuring in the 21st century, through the understanding of the production, ownership, and administration of a LEG. The research is developed from the case of Cyrela Brazil Realty, critically recovering the broad debate about the profound transformations that took place after the IPO in conjunction with a period of great expansion (2007-2012) and seeking to advance on the continuity of the transformations in the company's restructuring and in their real estate strategies in the subsequent period (2013-2022). We have a hypothesis that the growing expansion of CBR activities, as a LEG, dates back to a current process of centralizing investments in São Paulo, particularly in the recent period 2016-2022. Besides that, there is a growing sophistication of ownership arrangements, establishing a new stage in real estate restructuring, which occurs as a trend applied to other companies. The methodology includes an exploratory approach by obtaining an overview of the group's activities through reports and the deepening of examples that account for business diversification and real estate products. This scientific initiation is part of the project "Real Estate and Infrastructures under the domain of large groups Economic: financialization and metropolization of space in São Paulo of the 21st century", funded by FAPESP (Aid Regular - 2019/18881-0), which studies the performance and impact of large economic groups on space production.(AU)