Barzel Properties Embraces Logistics Development in Ribeirão das Neves and Invests in its First Asset in the Region

The asset is set to receive an A+ rating and is scheduled to be delivered during the second half of this year.

Projection of BRZ040 Logistics Park, a new logistics park that is under construction by Barzel, in Minas Gerais

By: SiiLA News

06/12/2023

Barzel Properties, a company focused on real estate management and development, gathered local authorities and industry professionals in Ribeirão das Neves (Minas Gerais), to announce its first industrial property in the region, the BRZ040 Logistics Park.

The asset is currently under construction and is expected to be delivered in the second half of 2023. Once completed, the industrial complex is set to receive an A+ rating by SiiLA Market Analytics platform, and will feature 67,475 m² of GLA. Barzel is investing approximately R$ 280 million (around 55,1 million dollars) in the project, designed to accommodate medium and large-scale tenants, providing agility in industrial, logistics, and warehousing operations. According to the management company, the industrial property will have the ability to accommodate up to 20 different companies.

The warehouse is strategically located in the metropolitan region of Belo Horizonte, with easy access to BR 040, a highway that connects Brasília to Rio de Janeiro. Barzel believes that Ribeirão das Neves region has potential to become a logistics hub.

Neves offered highly favorable conditions for us. Beyond its close proximity to Belo Horizonte, factors such as strategic location, a skilled workforce, and the comprehensive services provided by the municipality hold immense importance. The cumulative effect of these factors translates into significant advantages for companies considering establishment in the city. The availability of fiscal incentives also played a pivotal role in our decision," expressed Bruno Turaça, Portfolio Director at Barzel.

Minas Gerais' Industrial Property Market and Occupancy Trends

Giancarlo Nicastro, CEO at SiiLA, presented SiiLA´s data and insights for the Minas Gerais industrial Market

Barzel organized an event last May and invited Giancarlo Nicastro, CEO of SiiLA, to deliver a captivating presentation on the industrial properties market in the state of Minas Gerais. Nicastro's insightful analysis, supported by data and analysis from Market Analytics provided invaluable insights to the attendees.

SiiLA's coverage extends to 2.3 million m² of industrial properties, spanning across the A+, A, and B classes in seven regions of the state of Minas Gerais. These regions include the Metropolitan Region of Belo Horizonte, Extrema, Triângulo Mineiro, Varginha, Juiz de Fora, Pouso Alegre, and Sete Lagoas. Notably, the state experienced a positive trend in occupancy rates during the first quarter of 2023. The rates climbed from 95% at the end of 2022 to an impressive 97% in the initial months of this year.

Specifically, the Metropolitan Region of Belo Horizonte, encompassing the municipalities of Confins, Contagem, Belo Horizonte, Betim, and Ribeirão das Neves, observed a decline in vacancy rates during the last quarter. The rates decreased from 6.94% in the fourth quarter of 2022 to 5.44%. Notably, this region houses the BRZ040 Logistics Park, further emphasizing the significance of this positive development.

About Barzel’s Operations

Founded in 2015, Barzel Properties manages over R$ 6 billion (about 1.18 billion dollars) in assets and specializes in the acquisition, retrofitting, development, and management of high-end corporate and industrial properties. In late 2022, the company acquired the Sompo Building, which was featured in a article by REsource. Barzel’s retrofit projects have also been extensively covered here. Learn more about the company’s portfolio by accessing SiiLA SPOT.

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ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.