Exclusive: Zagros details billion-real capital raise and the future of GGRC11 in logistics
- In an interview with SiiLA REsource, Pedro van den Berg explains the strategy behind the R$1.48 billion raised, the fund’s recent acquisitions and its plan to consolidate GGRC11 among the largest names in the logistics sector
After completing a R$1.48 billion capital raise, GGRC11 is on track to become one of the largest funds in the logistics market. With its net asset value rising from R$2.4 billion to approximately R$3.8 billion, the fund manager is now focused on ensuring the sustainability of this growth through both short- and long-term strategies.
Pedro van den Berg, CEO of Zagros Capital, described the latest offering as a continuation of the previous one, which gradually increased in size as demand grew, helping determine both the scale of the issuance and the assets the manager was targeting. According to the management team, the goal was to position the fund with a well-diversified portfolio, regardless of market conditions or sentiment.
“What we had in mind for this offering was for GGRC to become an increasingly logistics-focused fund, with less tenant concentration [...] and greater diversification. At the same time, we wanted to reach a relevant scale and rank among the largest funds in the industry.
We basically achieved that in a very challenging market, with many things happening at the same time both abroad and here in Brazil: geopolitical instability, inflation, elections, etc. I think we had a significant success,” van den Berg said.
The management team has also noticed growing anxiety among investors regarding immediate returns following acquisitions. In Pedro’s view, this is a natural part of the market, but the manager seeks to balance those expectations with a long-term strategy.
“Unfortunately, we are in a very difficult macroeconomic environment, and it has become normal for an investor to receive a high distribution and still think it is not enough [...] But I want to understand how sustainable that is over time and what the total return will be. A real estate fund is designed to be a perpetual product and to generate total returns. You have the return from distributions, the fund’s yield, but you also have the potential return from capital appreciation.”
Pedro also highlighted that the fund is currently selling assets as part of a portfolio recycling strategy, while maintaining its goal of keeping exposure to any single tenant below 10% of revenue.
Before the latest acquisitions were fully incorporated into the portfolio, GGRC11 had 49 tenants across more than 1 million square meters, with logistics properties accounting for 82.92% of the portfolio and leverage below 10%.
Fund’s latest acquisitions
GGRC11 carried out approximately R$960.5 million in transactions while conducting its 11th issuance, acquiring logistics assets across Minas Gerais, São Paulo, Santa Catarina and Bahia. The strategy focused primarily on meeting growing e-commerce demand and securing strategically located last-mile properties.
In Minas Gerais, the acquisitions of Pouso Alegre Business Park and Infinity Business Park, in Extrema, were seen as complementary investments based on an integrated logistics strategy focused on industrial operations and, particularly, e-commerce.
“Extrema functions as an e-commerce hub. From Pouso Alegre, many companies already ship products to Extrema. Our warehouse in Extrema is operated by Midea’s logistics provider. Midea manufactures and stores its products in Pouso Alegre, sends to Extrema what will be sold through e-commerce and distributes it from there. We saw very significant complementarity between these two centers,” he explained.
With the latest phase of Brazil’s tax reform now in effect, one of the market’s concerns is its potential impact on logistics hubs that have historically benefited from tax incentives, as is the case with Extrema.
The region currently has 17 Class A+ and A properties totaling approximately 1.33 million square meters, zero vacancy and another 387,000 square meters of new inventory expected to be delivered between 2027 and 2028, with market value at R$26.10.
Although the manager is closely monitoring the changes resulting from the tax reform, it continues to view the region positively.
“We would not make an investment now if our base case were that Extrema was going to become a ‘ghost town.’ Of course, these tax changes could have some impact on the market, but what we are seeing today is that this effect is being more than offset by increases in values per square meter.”
In São Paulo, the Galoppo Diadema and CL SP Politécnica transactions were structured around a last-mile strategy, targeting competitive locations near Latin America’s largest consumer market.
While the Diadema property, delivered in the final quarter of 2025, was acquired with a tenant already in place, the asset sold by Sanca is scheduled for delivery in 2027 and is not yet under lease negotiations. In the manager’s view, this creates the opportunity to negotiate rents closer to market levels, increasing the property’s value.
“The opportunity was to find an asset still under development because that allows you to capture some upside that you would not have with a completed property. If it were already completed and leased to Mercado Livre, Amazon or Shopee, it would have a different price — even if it were pre-leased. What we did was accept the lease-up risk.”
Other acquisitions made by the fund include Braspark A, B and C – Garuva (SC), Camaçari III (BA) and Novo Camaçari (BA).
Details of the transactions and their cap rates are available in SiiLA’s exclusive reports for subscribers.
