Vasco hit by property setback as São Januário revamp stalls | OneFootball

The ambitious project to fund the long-awaited renovation of São Januário has turned into a major and complex problem in the tight real estate market of the city of Rio de Janeiro. Vasco put up for sale a significant total of 280,000 square meters of building rights for R$ 500 million, aiming to raise millions in private funding for the construction work. The club is asking approximately R$ 1,700 per square meter, a figure lower than the R$ 2,000 usually charged in the region. Despite the attractive price set, the board has run into major difficulty finding a single investor with the financial muscle willing to close such a gigantic real estate deal.

Approved during 2024 under the administration of current mayor Eduardo Paes, the unprecedented urban operation provides for expanding the historic stadium’s capacity from 22,000 to 47,000 fans. The project plans to transform the old venue built in 1927 into a modern multi-use arena, featuring new stands, a large covered structure for concerts, integrated commercial areas, and the complete urban renewal of the surrounding area in the São Cristóvão neighborhood. Without the urgent conversion of these accumulated building credits into cash, the timeline for the start of structural work remains completely undefined and stalled behind the scenes.

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Middleman drives companies away and hurts Vasco deal

Under pressure from the urgent need to raise immediate funds, Vasco signed an exclusive contract with SOD Capital, led at the time by businessman Wilson Borges. The agreement transferred the heavy responsibility of structuring the operation and finding interested buyers directly to the hired intermediary. However, the construction market pointed to the executive’s reputation as the main obstacle preventing the deal from moving forward with legal certainty, driving away partners even after the official contract term ended in February.

Given the serious deadlock in Vasco’s finances, the municipal government brought major developers such as Tegra, Cyrela, and Patrimar, as well as representatives from Sinduscon and Ademi, to the table to discuss viable commercial solutions. During the direct negotiations, authorities promised to send a bill expanding the areas of Barra da Tijuca and Jacarepaguá where the credits could be used by construction companies. The condition demanded by city hall for issuing the new decree would be the non-negotiable guarantee that all 280,000 square meters would be purchased in full in Rio’s market.

São Januário, Vasco’s home — Photo: Getty Images

Division into lots sparks strong immediate rejection in the sector

The political suggestion to split Vasco’s huge volume among several competing developers was met with immediate unanimous rejection. Business leaders argue that the real estate market does not operate on a consortium system or shared pricing table to acquire building rights and lots at the same time. A CEO present at the intense meetings with city hall confirmed that there were no parties interested in taking on the entire area and criticized the proposal to divide the credits:

São Januário renovation project, Vasco stadium — Photo: Project by Sergio Moreira Dias, Felipe Nicolau, Willian Freixo, Clarissa Pereira and Ana Carolina Dias

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This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.