3R sets up a R$150 million real estate fund to buy university assets

Gestora 3R monta fundo imobiliário de R$ 150 mi para comprar bens de universidades.| The manager launches new real estate fund despite yjrchallenging scenario

By: SiiLA News

01/18/2022

Despite the more challenging macroeconomic environment for fundraising, 3R Investimentos will launch the initial offering of shares in a real estate fund worth R$ 150 million until the beginning of February. They are aiming to open up a little-explored sector, which is the acquisition of properties occupied by community universities to explore the renting model. The operation is known as sale and leaseback, in which the seller of the property remains as a tenant.

The fund aims to buy a stake in two buildings on the University of Passo Fundo (RS) campus. The projection is to extract a cap rate (the ratio between the annual rental income and the amount paid for the property) of 12%, with dividends in the order of 10.5% per year – a return that can be considered high. The offer will be restricted to qualified investors, and talks are underway for docking by family offices linked to the construction and education sectors of São Paulo.

There are at least two real estate funds dedicated to university buildings, but none of them works with community educational institutions – which are organizations without a defined owner. The monthly fees must only serve to cover the costs of the courses, so the profit must be used in the university itself.

More Risks

For the investors, a transaction with this type of university involves more risk (hence the request for a higher return). Since the law gives greater protection to organizations with social purposes, collecting defaults or even executing debts makes it tricky to collect rent

Read full story (in Portuguese).

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