Via Parque Shopping FII Halts Income Distribution Amid Vacancy and Default Issues

Last week, the Via Parque Shopping Real Estate Investment Fund (FVPQ11), managed by Rio Bravo, announced that it will suspend earnings distribution to investors. The decision comes amid operational challenges stemming from high vacancy rates and increased delinquency at the Via Parque Shopping, located in Jacarepaguá, Rio de Janeiro.

In an October 31 statement, Rio Bravo explained, “The Fund did not generate cash results, as the revenue from the shopping center administrator was insufficient to cover the Fund’s costs. As a result, there will be no earnings distribution to investors.” The statement further indicated that the administrator plans to take “all necessary steps to restore the property’s financial stability.”

According to the latest financial report from August, the fund has experienced declines in Net Operating Income (NOI), rental revenue, and parking income, reflecting ongoing financial strain. Via Parque Shopping, the fund’s only asset, is a class B property and one of the largest shopping centers in the area. However, it is currently grappling with vacant space, which has impacted revenue and diminished the fund's distribution capacity.

The REsource team reached out to Rio Bravo, which declined to comment on the matter, noting that the company serves solely as the fiduciary manager of the fund, not directly managing the asset. When asked about ongoing measures, ALLOS, the operator responsible for managing the shopping center, also chose not to comment, directing the team to seek clarification directly from Rio Bravo.

Data from SiiLA’s GROCS platform reveals that the property’s occupancy rate dropped from 94.2% in Q3 2023 to 88.3% by the end of Q2, marking a decline of 5.9 percentage points.