Grupo Pão de Açúcar (GPA), one of Brazil's largest retail networks, led by Marcelo Pimentel, has closed the sale of its administrative headquarters located in the Jardim Paulista neighborhood of São Paulo for R$218 million. The news was made public through a Relevant Fact disclosed by the buyer, the Real Estate Investment Fund Tellus Properties (TEPP11).

As gathered, the transaction was conducted in two parts. The first was by the Fund, which acquired the property located at Avenida Brigadeiro Luis Antônio for a total of R$109 million, the GPA – Grupo Pão de Açúcar, with an initial payment of R$14.5 million already made as a deposit.

According to SiiLA's intelligence team, the transaction presented a stabilized cap rate of 8.75%. In addition to the sale, GPA is executing a sale & leaseback move, in which it will pay a rent of R$ 72.34/m².

• Read more: Sale and Leaseback: Unlocking Capital and Flexibility in Real Estate Transactions

The second part of the transaction involves the land adjacent to the administrative headquarters, this time to the Grupo von Ihering - GVI, for another R$109 million. The space, with a considerable area for development, was acquired by Frederico von Ihering Azevedo's company.

Market information suggests the intention to develop high-end residential buildings on the site, capitalizing on the attractiveness of the area near Ibirapuera Park.

This operation marks not only an important step for Tellus and GVI but also for GPA, which seeks a significant reduction in its net debt and a strengthening of its capital structure.