This is a relatively large site of 350,000 sq.m., with capacity for over 1,500 units to be built across a series of construction phases. The first phase, which is currently being progressed, is for 60,000 square metres of the Socorro site and a mixed development of 200 apartments and small houses.
The location and local market
The town of Socorro, which is on the edge of Aracaju, is an industrially active town with a growing business base, including a cement factory and other manufacturing activity. Thus demand for housing is strong and growing for both local employment and as a dormitory suburb of Aracaju.
There is extensive development in the growing dormitory town and sales take-up of apartments in this area is rapid.
Delta 4:Property has formed a subsidiary which has entered into a joint venture with both the site owner and a local developer partner who has a strong reputation in the region.
The town of Socorro is developing rapidly with the growth of local industrial investment, steel mill, factories and increased demand for staff in central Aracaju. Consequently, Socorro's population is increasing and, in turn, demand for housing is strong. There is a shortage of sites and so prices are strengthening, particularly on the Aracaju side of the area, where our site is. We already have a scheme designed for our 30,000 sq.m. site, which is next to a much larger site (330,000 sq.m.) owned by a group of local developer/investors. We are all willing to develop but are now delaying development to maximise the profitability of the site.