With 15 years of experience in the Brazilian real estate market, Klabin Segall has a reputation for constructing residential apartment buildings that both befit and embellish their surroundings. It was also one of the top three best-selling construction companies in Brazil in 2008, achieving record sales and growth. Reuben Ford takes a closer look at how Klabin Segall continues to build on its success.
Klabin Segall has been a recognized name in the construction industry since 1994, when it was founded in São Paulo. From the beginning, the company focused on luxury and excellence, and in 2004 gained ISO: 9001 certification, which is still a rarity in this sector today.
The many successful projects that punctuate the company’s history culminated in the formation of the Klabin Segall Group in 2007. The same year had seen the acquisition of Setin Engenharia, another well-respected construction company, and the group had also incorporated its own agency, Klabin Segall Vendas, to handle sales. Operating in different segments of the Brazilian real estate industry afforded Klabin Segall greater coverage of the market and further opportunity for expansion.
The construction company has continued going from strength to strength. Recognized in the luxury homes market, Klabin Segall launched a more popular brand of apartments in 2008 called Olá, which extended the quality and reliability of the company to a lower-income public.
The acquisition of Setin was also key in the group’s achievement of the ISO: 14001 certificate, making it the first construction company in Latin America to hold the award.
Today, Klabin Segall has a strong market presence in the São Paulo and Rio de Janeiro regions, and has also completed successful projects in three other states: Goiás, Minas Gerais and Mato Grosso do Sul. This presence is greatly reinforced by the now 130-strong sales team of Klabin Segall Vendas.
The company’s success is based on its firm focus on the client. Klabin Segall is fully aware of the fact that the homebuyer is investing in a dream, and as such prioritizes an honest and direct sales approach. The company was a pioneer in offering the client the option to personalize the plans of the apartment, modifying the layout and fittings to their own specifications.
This innovation has now developed into the Affinity Program, which offers two different services. The first allows the customer to completely alter the plans and fittings of the property with the assistance of an interior designer and architect. The second option suggests a range of 15 to 20 different floor plans, from which the client can choose, as well as three to five finish options, such as flooring, kitchens, bathrooms and tiles. An architectural showroom displays the variation of materials, and offers technical assistance.
The intention of the Affinity Program is more than just creating a dream home; it also reassures the client that all questions regarding the new home would be answered in 24 hours. In order to honor this promise Klabin Segall offers several different means of communication to the customer; the most important of which is the company Web site. With an individual password the homebuyer can access all the information regarding their purchase, such as financial details, architects’ plans and virtual tours of the building site.
RECORD APARTMENT SALES
Klabin Segall’s exceptional service, together with buildings that consider the architecture and identity of the neighborhood, have helped it to achieve record sales. An example is the Cores da Barra building in São Paulo’s Barra Funda district, which was launched in 2000 and was a pioneer in the renovation of the traditional neighborhood. Forty percent of the apartments were sold at the launch. In 2005, Cores da Lapa in the Lapa district, sold all 700 units in just one and a half hours.
Olá, Klabin Segall’s more economic brand of apartments, has also been a success, with sell-out projects in São Paulo state, and in Anapólis in Goiás. Favorable financial terms offered by the group make Olá apartments more accessible to clients. The brand was responsible for 15 percent of the company’s sales in 2008.
At the end of 2008, Klabin Segall launched a new project in partnership with the construction company São José. The exclusive luxury apartment complex that includes a day spa, was inspired by similar buildings in Punta Del Este, New York and Tokyo. Sales of the 64 apartments, which measure between 400 and 500 square meters (with penthouses of 700 and 900 square meters) are expected to reach a total of $350 million. The architecture of the complex has been based on impressive New York structures such as the Plaza Hotel. In light of the international economic crisis, which has slowed some projects due to market insecurity and lack of credit availability, the two apartment buildings, named 106 Seridó (after the address), are aimed at an elite client base.
BEST EVER PROFITS
106 Seridó represents an enormous investment for Klabin Segall and also reflects the company’s huge growth over the last few years. In 2008 the company reported annual sales of $460 million, equating to a net profit of $210 million, a 215 percent rise over 2007.
According to the company, the enormous success is also due to the balanced mix of products that the group offers, a strong and resolute sales strategy and superior quality. Although there are larger buildings in Brazil, Klabin Segall’s two offices in São Paulo and Rio de Janeiro and 700 staff form a competitive structure that offers a personal touch and complete service with proven success. Last year the group was one of the top three construction companies in Brazil in terms of sales volume.
As an established reference in the Brazilian residential property market, the Klabin Segall Group specializes in producing high quality and personalized homes. Innovative design and payment programs have modernized the industry and identified the group as a pioneer in the sector. Whether constructing accessibly priced, high-quality apartments, or exclusive luxury complexes, Klabin Segall is dedicated to building a better future for Brazil.