BTLG11 Makes Historic Industrial Acquisition: 13 Assets Purchased in a R$ 1.7 Billion Deal

BTG States that the Transaction is Part of its Strategy to Invest in Premium Assets
The Properties are Currently Leased to Major Companies, such as Unilever, DHL, Nestlé, and Shopee

Fernando Crestana, Associate Partner at BTG Pactual

By: SiiLA News & SiiLA News

10/17/2024

BTG Pactual, though BTG Pactual Logistics FII (BTLG11), has just announced the purchase of 13 logistics assets from GLP for a staggering R$ 1,769,041,994.75, with a Cap Rate of *8.2%, according to analysis from the SiiLA platform.

This is BTG’s second major deal within a week – last Friday, the group announced the acquisition of 18 hotels for R$ 1.7 billion, through three of its own vehicles: Maxinvest (HTMX11), BTG Hotels (BTHI11), and an institutional fund curreny in the structuring phase.

In a statement, the fund’s management emphasized that the acquisition strengthens the company's strategy in premium logistics investments, with high-quality assets in strategic locations. This is the largest logistics transaction ever recorded and has been under negotiation since August, as reported by REsource.

Read more: BTLG11: Analysts say the fund shows strength and consolidates its position in the segment after a billion-dollar acquisition

The 13 real estate assets total 541,720 m² of gross leasable area (GLA), with properties mainly located within a 60 km radius of São Paulo city. As a result, the fund's exposure to assets within this radius increases from 54% to 71%, according to the company.

BTLG Louveira VIII (formerly GLP Louveira), acquired by BTG Pactual’s FII

Among the assets located in São Paulo that are part of the acquired portfolio, the Louveira complex stands out, consisting of nine logistics developments, with tenants such as Unilever, Shopee, DHL, and JSL. Other notable assets include BTLG Itapevi I and BTLG SBC I, the latter fully occupied by Nestlé. The transaction also includes the BTLG Suape project in Pernambuco and BTLG Queimados in Rio de Janeiro.

The company's statement also noted that 76% of the revenue from the acquired developments comes from large tenants such as Unilever, Nestlé, and Shopee, with long-term leases and severe penalties for early termination.

"Our capital recycling plan is aligned with investors' goals, and we have a strong growth track record that has established us as market leaders in Brazil for several years. We continue to follow our investment plans, which now total around R$ 16 billion since we started operating in the country," said Ricardo Antoneli, Investment Director of GLP Capital Partners in Brazil, in an official statement.

GLP also made headlines in REsource last week following the announcement that Ares Management Corporation had acquired the company’s global operations.

Financial terms

The payment for this transaction will be made in two installments: R$ 1.15 billion has already been paid, and the remaining R$ 614 million will be paid over 18 months, adjusted by the IPCA (Brazil’s inflation index).

And more... In a new deal, LOG sells assets for R$ 484 million to BTG Pactual LOGCP FII

BTG did not respond to REsource’s request for comment

*Updated on 10/18/2024 at 2:56 pm

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