Brazilian Public offerings of Real Estate Investment Funds reach R$ 7.4 billion

Similar to stocks of publicly traded companies, Real Estate Investment Funds are traded on the stock exchange and require attention and study for investment.

Mauro Lima, Managing Partner at Inter Asset, the fund manager for the INDE11 fund currently undergoing an IPO of R$ 200 million.

By: SiiLA News

12/12/2023

Real Estate Investment Funds (REITs) represent collective investment vehicles designed for investments in real estate projects, such as commercial buildings, shopping malls, and industrial properties. Investors acquire units of these funds, becoming unitholders.

Similar to shares of publicly traded companies, Real Estate Investment Funds are traded on the stock exchange. Their trading is called public offerings (PO), constituting a crucial mechanism in the financial market, providing opportunities for both investors and traded real estate projects.

As with any investment, POs should be studied and analyzed with caution. Interested investors need to pay attention to the documents made available, such as the prospectus and the fund's regulations. These documents detail relevant information, including the fund's objectives, investment strategy, and associated risks.

What is available?

Currently, there are 20 funds in public offering, covering everything from logistics projects to funds related to cemeteries. In total, the amount to be raised exceeds R$ 7.4 billion. The highest amount to be raised relates to KNHF11, a hybrid fund from Kinea in its second issuance, with a base amount of R$ 790 million.

The main funds and their fundraising amounts are:

Vinci Shopping Centers (VISC11) - R$ 700 million (Shopping Mall)
Genial Malls (MALL11) - R$ 502 million (Shopping Mall)
Guardian Logística (GALG11) - R$ 500 million (Logistics)
Kinea Desenvolvimento Logístico (KLOG11) - R$ 425 million (Logistics)
Telus Rio Bravo Renda Logística (TRBL11) - R$ 150 million (Logistics)
VBI REITS FOF (RVBI11) - R$ 750 million (Fund of Funds)
Inter Desenvolvimento (INDE11) - R$ 200 million (Development)
Mérito Cemitérios (MCEM11) - R$ 150 million (Cemetery)

Trading

Funds are traded on the stock exchange, and their purchase can be made through brokerage firms. It is important for the investor to pay attention to the strategy, and experts recommend diversification of investments.

Remember that investing always involves risks, and it is essential to conduct a careful analysis before making decisions. If you have specific doubts about an REIT or the purchase process, do not hesitate to seek the guidance of an investment professional or financial advisor.

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