EcoHouse Group

EcoHouse Group Developments Ltd
Private
Industry Construction
Housing Development
Founded 2009 (2009)
Founder Anthony Armstrong Emery
Headquarters Natal, Rio Grande do Norte, Brazil
Key people
 Anthony Armstrong Emery (founder and CEO)
Owner Anthony Armstrong Emery

EcoHouse Group Developments Ltd is a multinational real estate company based in London, England which had operations in Natal, Rio Grande do Norte, Brazil[1] but is now being liquidated.[2] The company supposedly specialised in the construction of social housing through the Brazilian government's Minha Casa, Minha Vida programme; however, in August 2014 the Brazilian Embassy in Singapore (where Ecohouse attracted many investors) stated that the company had no relationship with the Brazilian government,[3][4][5] in November 2014 it appeared the company was not on the government's list of participants in the scheme, and the company is subject to fraud investigations by Brazilian and British police.[6][7]

As of 2013, the group claimed to have offices in London, England, Singapore, Brazil, Canada and Dubai and more than 1000 employees. According to the Financial Times (before the allegations of fraud) it is "one of the largest property and construction companies in northeast Brazil";[8][9][10] however, they do not appear on the 2013 Inteligência Empresarial da Construção list of the hundred largest construction companies in Brazil.[11]

History

Launched in 2007 by Englishman Anthony Armstrong Emery,[12] EcoHouse Group claims to be the only UK company authorised to build developments under Minha Casa, Minha Vida ("My House, My Life"), a social housing project launched by the Brazilian Government.[13] Minha Casa, Minha Vida is a public-private partnership that started in 2009 in an attempt to create affordable housing for Brazilians currently living in favelas.[13]

In April 2012, EcoHouse's developments were discussed by Brazil's Minister of Social Security, Garibaldi Alves Filho, who described the company as having attention to detail and determination to offer comfort. He made these remarks at an event which the company had invited him to attend.[14][15]

In January 2013, the group reached a joint investment agreement with Conisa Constructions, a company founded in 1996 specialising in the construction of premium homes in Rio Grande do Norte. EcoHouse has also secured an option to buy a controlling interest in the company.[16]

Legal difficulties

In early 2014, EcoHouse stopped selling Brazilian properties in Singapore after investors filed against the company for failing to return investment money on time.[17][18] A story in Private Eye expressed "serious doubts about the ability of Ecohouse to deliver on such promised short-term high returns"; observing that the company is not regulated by the Financial Conduct Authority.[19]

In August 2014, after Ecohouse closed its Singapore offices suddenly, the Brazilian Embassy there denied any relationship between the Brazilian government and Ecohouse, stating that there is "no link whatsoever" and that they "feel sorry for these investors". Ecohouse is not regulated by the Monetary Authority of Singapore. [3][4][5]

In November 2014, Private Eye stated that the Richmond offices were "suddenly closed" and the London "global headquarters" telephone number redirected calls to a mobile phone number "whose message box is full" after EcoHouse failed to come to terms on payments about interest on 20 million pounds given by investors and complaints were raised to authorities in Singapore and United Kingdom.[20] Later that month, the Brazilian police announced a probe into the company for alleged fraud, money laundering, tax evasion, tax-related crime and criminal conspiracy; and a freedom of information request in Brazil by the Financial Times showed no record of the company being associated with the scheme. The Banco do Brasil and Caixa Econômica, the two state banks involved with Minha Casa, Minha Vida, also denied any knowledge of the company. 50 federal police officers and 12 tax officers raided the company. The Brazilian tax authority stated the company had been under investigation for 8 months.[6] Scotland Yard in the UK have also launched a fraud investigation.[7]

Developments

Social Housing

EcoHouse’s first two social housing projects have been Arco Iris and Casa Nova, consisting of 220 and 515 homes respectively.[21][22] The second, Casa Nova, is located near São Gonçalo do Amarante - Natal International Airport,[23] which is set to open in April 2014.[24] In 2013, construction began on EcoHouse's third development, Residencial Bosque, which is also located near São Gonçalo do Amarante[25] and is intended to consist of around 2,200 homes.[21] Alongside all developments, EcoHouse is planting thousands of Indian neem trees to help combat the threat posed by mosquitoes.[21]

The company's financing model relies on retail investment, rather than securing bank loans like other developers under the Minha Casa, Minha Vida program.[26][27] The company claims that investors' money is placed in an escrow account overseen by a lawyer in the UK, released to the developer once the land has been bought, before construction begins.[10][28]

Other Projects

EcoHouse Group sponsors Alecrim FC in Natal, which signed Stefano Seedorf, cousin of Clarence Seedorf in February 2013.[29] EcoHouse also sponsors Alecrim Rugby Club, which won the 2013 Brazilian Cup after finishing runner-up the previous year.[30][31]

In April 2013, the group was invited to participate in MAIS RN,[32] a partnership between the Rio Grande do Norte state government and the Federation of Industries of Rio Grande do Norte (Fiern), which will conduct a full evaluation of the economy, production techniques and infrastructure needs of Rio Grande do Norte.[33]

In July 2013, the group opened the Escola Corporativa Elilde Armstrong, named after the wife of the company founder, at its Bosque Acacias project. The school, which is run in partnership with Rio Grande do Norte's Industrial Social Services (SESI), is free to attend and provides 20 EcoHouse construction workers with elementary and middle school education. Students at the school receive t-shirts and all necessary books free of charge and are presented with official Ministry of Education certificates on completion of their course.[34][35]

Awards

2014

2013

2012

2011

References

  1. ↑ Toby Walne. "'Forget shares, we want to profit from helping Brazil house millions in poverty': Why a land with slums is a top long-term bet - and how to invest in emerging markets". Mail Online. Retrieved 14 March 2014.
  2. ↑ http://www.pwc.co.uk/business-recovery/administrations/ecohouse-developments-ltd-in-creditors-voluntary-liquidation-the-company.jhtml
  3. 1 2 http://www.channelnewsasia.com/news/singapore/brazil-denies-links-with/1313584.html
  4. 1 2 http://www.channelnewsasia.com/news/business/singapore/brazilian-embassy-casts/1321136.html
  5. 1 2 http://www.channelnewsasia.com/news/singapore/brazilian-ambassador/1319646.html
  6. 1 2 Joe Leahy and Thalita Carrico (November 23, 2014). "Brazilian police probe British property developer EcoHouse". www.ft.com.
  7. 1 2 "Ecohouse Recycled". Private Eye. 12 Dec 2014. p. 36.
  8. ↑ Levonian-Cole, Teresa (March 7, 2014). "Why developer Anthony Armstrong Emery is hated by some in Brazil". www.ft.com.
  9. ↑ Jim White. "EcoHouse Group founder Anthony Armstrong Emery making mark in Brazilian football with Alecrim". The Telegraph. Retrieved 14 March 2014.
  10. 1 2 "I'm an Englishman In Brazil showing up the locals". Estates Gazette. 8 June 2013.
  11. ↑ "As 100 maiores construtoras do Brasil".
  12. ↑ White, Jim (February 2, 2014). "EcoHouse Group founder Anthony Armstrong Emery making mark in Brazilian football with Alecrim". telegraph.co.uk.
  13. 1 2 "EcoHouse launches its largest Brazilian Government backed social housing development to offer investors returns of 20 per cent per year". Homes and Travel. Retrieved 28 May 2013.
  14. ↑ "Garibaldi Alves Filho praises ECOHOUSE (Fully subtitled version in English)". Retrieved 9 January 2014.
  15. ↑ "Anthony Armstrong Emery: Delivering for Communities and Investors in Brazil". Intercontinental Finance (117). May 2013.
  16. ↑ "Fusão entre Conisa e Ecohouse já tem VGV de R$ 700 mi em 2013". Jornal de Hoje. Retrieved 28 May 2013.
  17. ↑ http://sg.news.yahoo.com/ecohouse-starts-play-catch-003047592--sector.html
  18. ↑ "EcoHouse frustrations start to surface".
  19. ↑ "Guardian angles". Private Eye. 15 Nov 2013. p. 33.
  20. ↑ "In The City/With Slicker". Private Eye. Retrieved 3 November 2014.
  21. 1 2 3 "Clients - EcoHouse Group". GMB Online. Retrieved 28 May 2013.
  22. ↑ "EcoHouse Group: Our Developments".
  23. ↑ "Minha Casa Minha Vida Brazil | EcoHouse Developments". Retrieved 28 May 2013.
  24. ↑ "Aeroporto de São Gonçalo receberá primeiro voo em 1° de abril de 2014". Portal Noar. Retrieved 28 May 2013.
  25. ↑ "Brazil social housing investment ‘makes a difference’". OPP Connect. Retrieved 28 May 2013.
  26. ↑ Duxbury, Nick. "Building a new Brazil". Inside Housing. Retrieved 6 January 2014.
  27. ↑ "A knockout deal". The Sunday Times. Retrieved 5 June 2014.
  28. ↑ Kate Hughes. "Is it worth taking a sporting bet on property in Brazil?". The Independent. Retrieved 5 June 2014.
  29. ↑ "Alecrim apresenta Stefano Seedorf, primo da estrela holandesa". Tribuna do Norte. Retrieved 28 May 2013.
  30. ↑ Kolle, Luis. "Alecrim vence BH Rugby e está no Super10 de 2014". Portal do Rugby. Retrieved 6 January 2014.
  31. ↑ "60 second interview: Anthony Armstrong-Emery of EcoHouse". International Estate Agent Today. Retrieved 28 May 2013.
  32. ↑ "EcoHouse Group chosen to sit on industry body".
  33. ↑ Marques, Ciro. "Governo lança projeto que norteará desenvolvimento econômico no Estado". Portal Noar. Retrieved 13 May 2013.
  34. ↑ "No canteiro de obras também se aprende a LER". Revista da Industria/RN. Retrieved 6 January 2014.
  35. ↑ "Brazilian developer opens school for workers". OPP. Retrieved 6 January 2014.
  36. ↑ "MIPIM 2014 Winners". MIPIM. Retrieved 8 April 2014.
  37. 1 2 "The AIPP Awards 2013". AIPP. Retrieved 28 May 2013.
  38. 1 2 3 "OPP Award Winners 2012". OPP Connect. Retrieved 28 May 2013.
  39. ↑ "The Fast50 Business Award Winners 2011". The Fast50. Retrieved 13 May 2013.
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