Bresco Announces the Departure of a Tenant Representing 3% of the GLA of the BRCO11 Fund

Data from the Market Analytics platform indicates that gross absorption in the first three quarters of 2023 exceeded 3 million square meters, with net absorption at 1.1 million square meters for industrial properties of classes A+, A, and B. SiiLA's analyses over the years show that the vacancy rate decreased from 21.16% in 2018 to 9.66% in September 2023. The peak of new leases in warehouses occurred in 2021 when gross absorption reached 4.5 million sqm.

According to Giancarlo Nicastro, CEO of SiiLA, the industrial real estate market has been developing rapidly in the country, although the period of enthusiasm observed between 2020 and 2022 has passed. "The numbers of new stock, as shown in the graph extracted from the Market Analytics platform, have been quite high in recent years. From 2018 onwards, more than 8 million square meters have been delivered, meaning that property owners and investors have also made significant investments in this type of asset."

"With new properties being delivered in various regions of the country, tenants can now choose the best property for their logistics operations," added the executive.

Occupancy data from SiiLA's logistics developments show that companies in Transport and Logistics and Consumer Goods, including retailers and e-commerce companies, are the main occupants of this type of property in the country.

he Bresco Logística fund, BRCO11, has 10 logistics developments in its portfolio, including high-standard warehouses and stand-alone properties, with over 392,000 square meters of GLA.

Of the announced exits, GPA is expected to have the greatest impact on the Fund. The retailer occupies 100% of the CD04 São Paulo GPA, which will now be entirely vacant. Subsequently, the exits of Magazine Luiza and Carrefour are also expected to impact the fund's performance.

Responding to inquiries from the REsource team, Bresco confirmed that the Fund has received four notices of exit but believes it is not an extraordinary event. Rafael Fonseca, partner, and CFO of Bresco, commented, "It is normal for people and companies to change, redo their plans. The fund currently has 4 notices of intention to exit properties. Those are expected to occur over the next 9 months."

According to the executive, "the fund believes it has a very good ability to quickly replace these companies and areas that will be vacated by new tenants."

In a report released by the fund, the exit of Magalu from Bresco Contagem has a 6-month notice period, compensation of 3 times the current rent value, and return of the grace period corrected by IPCA.

In the case of Carrefour, also leaving Bresco Contagem, the conditions include a 6-month notice period and compensation of 6 times the current rent value, in addition to the return of the discount corrected by IGP-M. In the case of GPA's early termination from the GPA CD04 São Paulo property, the conditions include a 9-month notice period and compensation of 3 times the current rent value.

More than 40% of the fund's tenant portfolio is concentrated in the Retail/E-commerce sector. In addition to the companies that have announced terminations, Natura, Mercado Livre, BRF, WestRock, Valgroup, Americanas, MRO, FM Logistics, Reckitt, and Whirlpool occupy space in the fund's properties.

According to the market monitoring of SiiLA's Market Analytics platform, in the last year, other companies have also vacated areas in the fund's properties. In the first quarter of 2023, Americanas returned more than 25,488 square meters in the Bresco Resende development, and in the 3rd quarter of 2022, Coopercarga had returned 14,000 square meters in the Bresco Itupeva property. 

The BRCO11 share is currently priced at R$ 122.60.