Brazil homebuilder MRV's plan for U.S. unit puts funding process on hold

SAO PAULO, Oct 7 (Reuters) - Brazilian homebuilder MRV plans for its U.S. unit Resia to gradually increase its built units by 2030 but has put on hold plans for a private equity funding process due to unfavorable market conditions, it said late on Thursday.

MRV Engenharia e Participacoes SA, as the company is formally known, said Resia has helped its results due to high demand for properties and elevated margins.

Resia is known for building multi-family rental units, and MRV said rising U.S. interest rates and inflation had boosted rental demand, especially in the Sun Belt region.

In the first half of 2022, Resia's net profit reached $62.72 million, almost the same level seen in the full year of 2021, the Brazilian company said, making room for a growth plan that will see the U.S. unit gradually increasing the number of units built and sold until it reaches 12,000 per year in 2030.

MRV said it expects Resia's accumulated net profit between 2022 and 2024 to total $273 million, before jumping to $846 million in the 2025-2027 period and reaching $2.84 billion between 2028 and 2030.

"Resia's net result will continue to bear significant representation for MRV&CO results," MRV said.

It noted, however, that it will no longer go through with a potential private equity funding process due to deteriorating market capital conditions.

The process will be resumed in the future in a more favorable scenario, it added. (Reporting by Gabriel Araujo; editing by Jason Neely)