Brazilian broker XP has announced a partnership with Direcional Engenharia to invest in the real estate financing startup Direto, a business arm of Direcional. XP acquired a 49.9% stake of Direto’s capital, still subject to regulatory approval, for an undisclosed amount. The deal represents an important milestone for XP, since it is XP’s debut in the real estate financing market.
Direto will offer three complementary solutions: loans for the acquisition of new and used properties, which may involve partnerships with other financial institutions; home equity, in which the property is used as collateral for loans, and acquisition of receivables portfolios from home builders and developers.
According to the deal, Direcional will work on business origination and in the formation of a team with extensive real estate and credit analysis experience. On the other end, XP will deal with the structuring of financing solutions, as well as distribution structure, and tech platform.
The deal will allow XP to expand its operations in the real estate segment, in which it is already operating in the structuring and distribution of Certificates of Real Estate Receivables (CRI) and Real Estate Investment Trusts (REIT) and in the securitization market.
The management of Direto will remain independent from its shareholders, with its own team in São Paulo and Belo Horizonte.