In Brazil, Bresco’s upcoming vertical logistics park, Bresco Raposo, will be located in the southern part of São Paulo, near Raposo Shopping, with easy access to the Régis Bittencourt and Raposo Tavares highways. Like the Mexican model, the development will target tenants with last-mile logistics strategies.

"It will be an iconic project, a true milestone for us and the entire Brazilian logistics market. We already have two similar parks in Japan, and with this expertise, we recognize that the growing demand for this type of space makes it increasingly viable," said Rafael Fonseca, CFO and partner at Bresco.

Fonseca did not disclose the total investment for the project but highlighted that the vertical park would maximize storage capacity. Despite the higher construction costs compared to horizontal warehouses, the increased GLA, due to the multi-level design, justifies the investment and enhances the project's overall efficiency.

Even though Bresco Raposo is still in the project approval stage, it has already attracted significant interest from potential tenants. Depending on future negotiations, the project could also evolve into a "Build to Suit (BTS)" development.

"Many are closely following the progress of this project. As it advances, conversations with interested parties are intensifying. Once construction begins, planned for 2025, we’ll have a clearer picture of the leasing negotiations," Fonseca added.

Real estate market sources indicate that two e-commerce companies and five non-e-commerce businesses have already expressed interest in occupying the site. Due to its prime location within São Paulo, the development is expected to serve companies that require high-volume, continuous product flows.

According to data from SiiLA's Spot platform, Bresco Raposo will be an A+ class logistics park, spanning a total area of 43,600 square meters.

The project will feature:

• Ceiling height: 8 meters
• Floor load capacity: 6t/m² - 2.5t/m²
• Cross-docking on both floors
• 60 loading docks on the first floor
• 28 loading docks on the ground floor
• Internal vehicle circulation roads
• Column spacing: 28m x 24m
• Sprinklers (k25) and J4 fire protection system
• LED and natural lighting
• 24-hour security with a bulletproof entrance gate
• Located 15 kilometers from downtown São Paulo
• Metal roofing with thermal insulation
• Options for air conditioning and refrigeration

Fonseca estimates that the leasing rate at Bresco Raposo could be around R$ 40/m². If confirmed, this would place rental costs for the vertical warehouse about 30% higher than other triple-A or A-grade warehouses within a 30-kilometer radius of São Paulo.

According to SiiLA’s Market Analytics, the average market rent for comparable properties in the second quarter of this year was R$ 30.04/m².

In the nearby A+ class Centro Logístico Raposo, market rents, as reported by SiiLA, stand at R$ 17.88/m².

Bresco acquired the land for the vertical logistics park in 2020. The site was previously home to an Itaú document storage facility.

"We are disciplined investors. Our focus is not on gaining visibility with this project but rather on meeting the growing demand from tenants for this type of property. In terms of the cap rate, we expect it to be in line with other logistics-focused developments," Fonseca concluded.