Iconic Properties in Faria Lima and JK, Owned by REITs: You Can Also Own a Share of Them

SiiLA conducted an exclusive survey based on coverage from the Market Analytics platform, focusing on the top high-end corporate buildings (A+ and A) in the Faria Lima and JK regions that have fractions owned by Real Estate Investment Trusts (REITs).

In the Faria Lima region, which currently has a 5% vacancy rate for high-end offices, the most iconic properties from the survey (in order of total private area) are:

·         Pátio Victor Malzoni:

Comprising two towers, the North Tower has 22,921 m² of private area and a 35.35% share owned by the BlueMacaw Catuaí Triple A REIT (BLCA11). The South Tower, with 45,959 m² of area, has a 32.13% share owned by the Pateo Bandeirantes REIT (PATB11).

·         Faria Lima Plaza:

With 32,745 m² of private area, this asset joined the region's new stock in March 2022 and has a 40% share owned by the XP Properties REIT (XPPR11).

·         Faria Lima 4440 – Acqua:

Delivered in 2011, this asset has 22,111 m² of private area and a 50% share owned by the VBI Prime Properties REIT (PVBI11).

·         Praça Faria Lima:

This corporate building, constructed in 2014, has 14,979 m² of private area, with 93.79% held by the Brisa Renda Imobiliária REIT.

·         The One:

With 12,223 m² of private area and delivered in 2012, this asset has 57.46% ownership by REITs, with 44.29% held by The One Rio Bravo REIT (ONEF11) and 13.17% held by the Pátria Edifícios Corporativos REIT (PATC11).

In the JK region, which had a 5.2% vacancy rate at the end of 1Q23, the following properties can be found:

·         Corporate Park:

This commercial building has 17,219 m² of private area and a 7.26% share owned by the Golden REIT.

·         JK Financial Center:

Delivered in 2000, this asset has 13,092 m² of private area and a 72.70% share owned by the Rio Bravo Renda Corporativa REIT (RCRB11).

·         JK 180:

With 12,833 m² of area, this asset was built in 2016 and has the Brisa Renda Imobiliária REIT as one of its owners, with a 35.70% share.

Analyzing all the properties surveyed, the average vacancy rate stands at 6.9%. In terms of the largest occupants, BTG Pactual Bank and Google appear at the top (both having their headquarters in Pátio Victor Malzoni), followed by the Asian e-commerce company Shopee (located in Faria Lima Plaza).

"The Faria Lima and JK regions are well-established for the high-end office market, attracting large companies and multinational tenants, which provides greater security to potential investors due to the low risk of floor returns that could impact vacancy rates and dividend reductions. In addition, these regions have shown great resilience to the Covid-19 pandemic, with low vacancies during the return to offices and an increase in asking prices," comments Giancarlo Nicastro, CEO of SiiLA.