The default of French businessman Alexandre Allard is threatening one of São Paulo’s most iconic luxury developments, the Cidade Matarazzo complex. The controversy stems from a R$335 million loan tied to Banco Master. 

The financing, signed in 2024, was directed toward investments in the project itself — created by Allard, who holds a 20% minority stake. The risk lies in the collateral structure, as the businessman pledged his ownership interest in the asset. 

However, the situation did not emerge unexpectedly. Early signs of financial stress appeared in early 2025. The first installment of the loan, totaling R$9 million and due on February 18, was not paid. The same occurred with the second installment, also R$9 million, due in March, confirming the default and increasing the risk of collateral enforcement. 

In practical terms, the contract allows for Allard’s stake in the development to be transferred — either to the bank or to third-party investors — as a way to settle the debt if it remains unpaid. This opens the door to a potential reshaping of the complex’s ownership structure. 

Cidade Matarazzo is home to Rosewood São Paulo, one of the project’s most prominent assets and widely regarded as one of the top luxury hotels in South America. The complex also includes a corporate office tower, Torre Rio Claro Offices. 

Despite the exposure of the asset in the financial structure, any enforcement of the collateral is not expected to directly impact the operations of the properties, which continue to function normally.