JiveMauá buys Luggo built-to-rent portfolio for R$ 166 million; MRV left with no new projects
- Company sells 437 residential units and retains only asset operations as high interest rates weigh on new projects in the segment.
MRV&CO completed the sale of Luggo’s 437 units for R$ 166 million last week. The transaction involves three developments located in Rio de Janeiro, Belo Horizonte and Brasília. The buyer is JiveMauá, which is structuring a real estate investment fund dedicated to this type of asset, the Mauá Capital Luggo Fundo de Investimento Imobiliário.
According to an analysis by SiiLA’s intelligence team, the transaction implies a cap rate of 8.9%.
The developments fall under the residential-for-rent segment, also known as built-to-rent or multifamily. Rafael Menin’s company now says it no longer has any completed or under-construction projects in this segment. According to MRV&CO, the move reflects the current interest-rate environment and is part of a strategy focused on operational simplification, deleveraging and cash generation. Luggo, however, will remain responsible for managing and operating the assets.
“Luggo will continue its asset management operations, with no other completed or under-construction developments at this time, given the current interest-rate environment,” the company said in a statement.
MRV&CO said it would not be able to participate in the story. JiveMauá, in turn, said that the details of the transaction are being handled by MRV.
Residential-for-rent divestment
This is not the first sale of this kind carried out by MRV&CO. In the same statement, the company said that in July it completed the sale of the Ten Oaks and Rayzor Ranch developments, both located in the United States and also operating under the residential-for-rent model.
At the time, the company gave a similar rationale for the transaction. “The changes are focused on simplifying operations, freeing up capital and strengthening cash generation,” it said.
According to SiiLA Market Analytics data, other developments have also ceased to be classified as multifamily following changes in their ownership structure. This is the case with assets under the ON brand, which were part of a joint venture between Vitacon and 7 Bridges. Following the end of the partnership, the developments began to be marketed individually.
Despite these moves, Brazil’s multifamily market continues to expand. SiiLA data show that more than 2,300 residential units are still expected to be delivered across Brazil in 2026. In addition, although occupancy rates at these developments have been declining, the segment has yet to record negative net absorption since residential-for-rent projects began gaining scale in the country.
