Fund acquires stake in the iconic "whale building" on Faria Lima, Birmann 32

BGR Asset Management (BGRB11), not yet listed on the stock exchange, acquires a stake in the property
With an investment of R$43,000 per m², the transaction presents a stabilized Cap Rate of 7.1%

Martín Jacó, Founding Partner – BGR Asset

By: SiiLA News

12/03/2024

The iconic Birmann 32, located on Faria Lima Avenue in São Paulo, known for the whale sculpture in its outdoor area, now has new investors. The real estate investment fund BGR Asset Management (BGRB11), which is yet to be listed on the stock exchange, acquired a 12.87% stake in the building. Arton Advisors is the company behind BGR's fund.

The price paid by the new investors was R$43,000 per square meter. According to an exclusive analysis from the Market Analytics platform by SiiLA, the transaction presents a stabilized Cap Rate of 7.1%.

"Our interest in having a stake in B32 has been long-standing, with many previous attempts. This time, there was alignment between the parties, and we were able to secure a stake in what is undoubtedly the best and most iconic office building in São Paulo," said Martín Jacó, Founding Partner of BGR Asset.

As a result of this deal, Birmann's stake in the property has been reduced to 23.5%. BGR Asset will now take over the management of leases and be responsible for negotiations with tenants.

Market experts believe this transaction comes at a timely moment for future investments, especially with the new project planned for the former Arena XP site on Faria Lima, just ahead of Birmann 32.

Other Owners

In addition to BGR Asset, there has been another recent development in the property. Last month, Partage, which already owned 50.5% of Birmann 32, acquired an additional 13% stake. This transaction, monitored by the Market Analytics platform, was carried out with a Cap Rate of 6.90%. As a result, Partage's current stake in the asset exceeds 63%.

Birmann 32

By: SiiLA

Data from SiiLA indicates that B32 is a Class A+ development with a total leasable area of 49,017 m², spread over 25 floors. Currently, Facebook is the largest tenant, occupying 13,496 m², followed by Banco Master, Shopee, and PwC (PricewaterhouseCoopers). The building hosts a significant concentration of companies in the finance, insurance, and real estate sectors.

Read more: Lease renewal at R$400/m² in the heart of Faria Lima could impact the real estate market in the region

The Faria Lima region is one of the most sought-after areas in the market. Its current vacancy rate is 9.73%, with a net absorption of 10,545 m². Additionally, the area has a market value of R$255.88 per m² for Class A+ developments.

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