In a relevant disclosure announcement, LOG CP revealed the sale of two assets from its portfolio to BTG Pactual's fund. According to the statement, FII BTLC11 acquired the assets of LOG Aracaju and LOG Londrina subsidiaries in a joint transaction, amounting to R$ 207,423,150 (about 43 million dollars). These properties offer a total gross leasable area of 90,761 square meters.

The sale of the assets will be carried out in three installments: 51.8% has already been received in the first installment; 19.2% will be paid within 13 months, adjusted by the IPCA (Brazil's National Consumer Price Index); and the remaining 29% will be paid in the final installment within 24 months, also adjusted by the IPCA.

Since the beginning of the year, LOG has been focusing on recycling its portfolio and has already concluded four transactions, resulting in the sale of 375,000 square meters of gross leasable area across eleven properties located in different regions of the country, including the Northeast, Southeast, South, and Midwest. These sales have been executed with significant margins, demonstrating the attractiveness and liquidity of the company's assets, regardless of their location.

According to the company´s statement, the plan is to continue adopting an asset recycling strategy as LOG believes it is the best way to generate value for its shareholders while strengthening its cash reserves for new investments. Since May 2023, LOG has achieved sales amounting to R$ 1.2 billion. The company stated, "These sales have been executed with significant margins and reflect the attractiveness and liquidity of our assets, regardless of their location. Asset recycling will remain an ongoing practice. We understand that this strategy is the most effective way to create value for our shareholders, maximizing returns on our assets and reinforcing our cash reserves for future investments." 

Assets Involved in the Transaction

Analyzing the Market Analytics data, we can observe that these assets, despite being located in opposite regions of the country, show excellent performance in the real estate market. According to the SiiLA survey, both industrial properties are fully leased.

LOG Aracaju: Classified as A+, this high-standard asset was delivered in October 2018 and covers over 29,000 square meters of gross leasable area. The property hosts a diverse range of tenants, including E-commerce, Food and Beverage, and Transportation and Logistics companies. As the name suggests, the property is situated in Aracaju, Sergipe, between the BR 101 and BR 235 highways.

LOG Londrina: A class A property, delivered in August 2014, and the largest in this transaction, offering more than 60,000 square meters of gross leasable area. It is occupied by Retail, Food and Beverage, and other businesses. This property is located in Londrina, Paraná, in the southern region of the country, near the local airport.

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Read more about LOG CP:

Beyond the Southeast: logistics begin to grow in Brazil

LOG CP's Asset Recycling Strategy Gains Momentum: Multi-Million Dollar Transactions and GLA Divestment Announced