Fraud, Liquidation and Vacancy: Banco Master’s Collapse Hits the Heart of São Paulo’s Corporate Real Estate Market

Recently, Banco Master has been the focus of multiple headlines: bankruptcy filings, portfolio sales and two takeover attempts. But the latest chapter involves an investigation into the sale of fake credit securities and the potential shutdown of its operations. 

A Federal Police (PF) action arrested Daniel Vorcaro, the bank’s president, on Tuesday (18), just days after the announcement that Master was being sold to Grupo Fictor and a consortium of investors from the United Arab Emirates. 

With an almost immediate impact, the Central Bank announced the extrajudicial liquidation, the shutdown of operations, the cancellation of the sale and the removal of the institution from the National Financial System (SFN), explains Renan Silva, professor of economics and financial markets at Ibmec Brasília. 

“Extrajudicial liquidation is a special regime enacted by the Central Bank when a financial institution can no longer operate safely due to severe issues involving solvency, liquidity, governance or regulatory compliance. In practice, it is the institution’s orderly shutdown, with the appointment of a liquidator responsible for selling assets and paying creditors according to the priority order set by law,” he explains. 

Beyond the financial market, Banco Master’s situation could also impact São Paulo’s real estate sector. The bank was responsible for the second-largest lease of 2024, which puts 14,000 m² at the Auri Plaza, in Vila Olímpia, at risk. 

“Unfortunately, there is no future for Banco Master. Under these conditions, operations are impossible due to economic-financial issues and the absence of a viable recovery plan,” says Renan Silva. 

With an uncertain outlook, the potential vacancy at Auri Plaza would inject 14,400 m² into the Vila Olímpia market, increasing the region’s vacancy rate in the A+ and A segment by 7.2 percentage points. 

The luxury price paid by Vorcaro — R$ 3.9 million per month — will leave behind a contractual crater. The agreement, signed for ten years in March 2024, would run until 2034. With only 20 months fulfilled, the potential early termination would stop circulating at least R$ 390 million, not including adjustments, penalties and discounts — a figure impossible to replicate in the short term. 

Lease insurance and penalties will apply, but payments must follow the priority order required by the Central Bank after the bank’s liquidation. 

Once one of the most expensive buildings in the area, Auri Plaza now returns to the market by force. This makes the property an ideal target for renegotiations, forced discounts and a bitter but unavoidable re-pricing.