The state government will have to pay the assessed value of the property, along with financial compensation to Prologis, since the company’s project was never executed. Construction work had not yet begun, as neither the city hall nor CETESB (São Paulo State Environmental Agency) — which is also under Tarcísio’s administration — had approved the development. 

There is, however, a possibility that compensation will not be entirely financial. According to the governor, the area initially reserved for the rail yard could be granted to the company. 

“This area was originally designated for the Line 20 yard. So, if we build the yard here, I won’t need that land anymore. I could transfer it to the company so they can develop a logistics center in the capital,” said Tarcísio. 

Based on the 30% figure mentioned by Tarcísio, the state would need to expropriate around 300,000 square meters of the property. In this scenario, compensation to Prologis should amount to at least BRL 255 million — a value proportional to the company’s original purchase, to avoid direct losses. 

However, when considering the assessed value of the land — R$ 602 million, the base amount paid by the state in expropriation cases — and the portion requested by the state for the construction of the maneuvering yard, 30% of that area corresponds to R$ 180 million, which is the minimum amount to be paid by the state. In the short term, this would represent a loss of R$ 75 million, not accounting for long-term losses. 

The former Ford factory site has a troubled history. After the automaker ceased operations in 2019, the property was sold in 2020 for BRL 550 million to Construtora São José — a deal that was never completed. As a result, Credit Suisse and BTG Pactual took control of the asset, with plans to invest BRL 1.2 billion in a large logistics complex with 451,000 square meters of GLA. 

However, the project never materialized. Environmental liabilities, the lack of CETESB approval, and high maintenance costs — around BRL 20 million per year — stalled development. Attempts to resell or exchange the asset with other companies also failed, and the site remained idle for about three years. 

Adjusted for inflation, the initial BRL 550 million investment rose to approximately BRL 720 million, but the owners’ net gain was modest due to accumulated costs. The land was finally sold in 2024 to Prologis, which paid BRL 850 million for the property — a high-value deal that reignited debate about its financial feasibility.