LOG CP's Asset Recycling Strategy Gains Momentum: Multi-Million Dollar Transactions and GLA Divestment Announced

Two real estate funds emerged as the purchasers of the properties recently sold by the company, indicating strong investor interest and market demand.
The company boasts a portfolio of constructed warehouses totaling 1.2 million square meters of GLA.

LOG Fortaleza II is one of the assets sold by Log CP to BTLG11 Fund

By: SiiLA News

06/07/2023

LOG CP continues to make significant strides in its asset recycling strategy, with the recent announcement of the sale of five industrial properties in the country. The warehouse developer first disclosed the sale of three assets to a fund owned by BTG Pactual (BTLG11), followed by the notification of the sale of two additional properties for another fund, FII Golgi Real Estate Investment Fund.

Within the transaction with the BTLG11 fund, two of the three sold assets are situated in the Northeast region of Brazil, with one located in Fortaleza (CE) and the other in Recife (PE). The third property is based in the city of Goiânia (GO). The total value of this transaction amounted to an impressive R$ 733.6 million (approximately 148.3 million dollars).

In a statement, LOG CP emphasized that it is capitalizing on institutional opportunities for its assets, ensuring that the transaction was executed at prices consistent with those reflected in the company's balance sheet. This strategic move will enable the company to effectively recycle its capital, acquire resources to reduce debt, and strengthen its financial position.

Learn more details about the assets sold to the BTG fund:

Log Fortaleza II (A+)

The asset was delivered in the third quarter of 2021 and has a Gross Leasable Area (GLA) of 93,021 sqm. It is occupied by companies in the Retail and E-commerce sectors.

Log Goiânia II (A)

This property was also delivered in the third quarter of 2021, with 47,928 sqm of GLA. Its tenants include companies in Transportation and Logistics, E-commerce, and other industries.

Log Recife (A)

The second-largest property involved in this transaction was delivered in the end of the second quarter of last year, with a GLA of 88,144 sqm. Currently, the asset is 100% leased by a major player in the E-commerce segment.

The data is sourced from the SiiLA real estate intelligence platform. To access complete information on these and other assets, explore Market Analytics.

Golgi Real Estate Fund Acquires Two Industrial Properties in South Region of Brazil for R$ 165 Million

Sold to FII Golgi, LOG Gravataí is an A property located in Rio Grande do Sul with a occupancy rate of 96% as of Q123

In addition to the assets sold to BTLG11, as mentioned above, LOG CP is also selling LOG Gravataí in Rio Grande do Sul and LOG São José dos Pinhais in Paraná. The latter transaction, worth R$ 165 million (33,3 million dollars), was completed with FII Golgi Real Estate Investment Fund.

According to SiiLA's data, these transactions encompass a substantial area of more than 309,000 sqm of gross leasable area (GLA) that will now be divested from LOG CP's portfolio. In an official statement, the company proudly announced total sales of R$ 900 million (equivalent to around 182 million dollars) for the current semester.

LOG CP has ambitious plans for expansion as SiiLA forecasts the delivery of approximately 300,000 sqm of new stock across various regions in Brazil, including Brasília (DF) and the Northeast. In a compelling interview conducted in September 2022, Guilherme Trotta, the Commercial Director of LOG CP, unveiled the company's visionary growth strategy, "Todos por 1.5," which aims to double their current gross leasable area (GLA) by the end of 2024. Don't miss the opportunity to read the full interview here.

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