When the stock of JHSF Participacaoes was floated on Bovespa, the Brazilian stock market, in 2007, no one had any idea how rapidly the company would end up growing over the subsequent decade. Although the company was initially valued at more than $100 million, making it one of the most valuable real estate development firms in the history of Brazil, no one realized that Jose Auriemo Neto, the company’s CEO, would lead the firm on to an eventual stock valuation of more than 10 times its IPO value in a period of less than 10 years.
But the result may not have been as surprising for those who knew Jose Auriemo Neto, a longtime industry veteran and one of the most ambitious real estate developers in the history of Brazil. Jose Auriemo Neto has been working on a number of hugely ambitious projects, including the General Motors Brazilian Proving Grounds, Sao Paolo Catarina Executive Airport and Parque Cidade Jardim. The latter project was created on the site of a slum in downtown Sao Paulo, at a time when many people believed that the city was entering a period of long-term decline. Auriemo Neto was able to snatch up the lot for peanuts, negotiating tax credits that would prove to be favorable for the long-term profitability of the site.
Over the course of one year, Auriemo Neto constructed nine luxury high-rises, for Class A office towers and a shopping center that ranks among the most luxurious in the country. Before the construction was even complete, the project was sold out, creating such huge demand that prices were actually beginning to take on the characteristics of a bidding war.
Auriemo Neto was also responsible for the purchase of the entire Fasano hotel chain, for just $10 million. This venerable luxury hotel chain proved to be in good hands with JHSF Participacaoes. The company has already upgraded the majority of the hotels in the chain and has even opened a new hotel in the city of Miami, the first unit in the Fasano hotel chain to be opened in an international market.
Currently, the stock price of JHSF Participacaoes is trading at more than $1. 3 billion, making Jose Auriemo Neto one of the most successful real estate developers in the history of Brazil.