2007 saw one of the largest real estate development IPOs in the history of Brazil. The company that was the subject of so much fanfare was JHSF Participacaoes, one of the largest real estate development firms in the country. Over the course of 2007, it became clear that the company was headed for a very large IPO. But what alternately turned out to be even more incredible was the growth the company experienced after its initial high valuation that has continued to this day.
Valued at over $100 million, many people at the time viewed the valuation of the company as being too high. But Jose Auriemo Neto, the CEO of JHSF Participacaoes, believed strongly in his company’s future and its ability to deliver strong shareholder value. Over the next few years, Auriemo Neto would oversee a number of real estate projects that led to a successful expansion in both the size and value of the company’s portfolio. This would ultimately lead to a valuation of the firm of more than $1 billion on the Brazilian stock market, making it one of the most valuable real estate development companies in all of Latin America.
Founded in 1972 by Fabio Auriemo, the father of Jose Auriemo Neto, JHSF Participacaoes was grown completely organically, starting off as just a small real estate development firm. But by the mid-1980s, JHSF Participacaoes was a major player in the construction of luxury hotels, luxury condominium high-rises and Class A office space developments all throughout Brazil. Throughout the 1990s, the company began expanding into building high-end shopping centers as well as urban parking locations.
By 2001, Fabio Auriemo was ready to step aside, passing the reins of the company over to his son, Jose Auriemo Neto. Throughout the course of the 2000s, Auriemo Neto would undergo an ambitious series of projects, rapidly growing the company to levels that it had never seen before. Among the projects that Auriemo Neto undertook were Parque Cidade Jardim, a huge complex that is located at the site of a former slum directly in the center of Sao Paulo. The project proved to be so successful that the entire thing was sold out prior to completion of construction.