The buyer is Credit Suisse's FII HGLG11, which has logistics in its portfolio in different Brazilian states, but most of which are concentrated in Minas Gerais and São Paulo.

In a rate analysis of return on real estate transactions carried out by the research team of SiiLA, the sale of LOG Betim II, if completed, will bring a stabilized Cap Rate of 9.16 % p.a. The Parque Torino transaction will represent a cap rate of 7.84% p.a., respectively. The historical average Cap Rate in Minas Gerais is 8.86% p.a., according to the SiiLA Market Analytics platform.

When analyzing the transaction of the two properties in a single purchase, the total value is equivalent to R$2,802.96 per sq meter. The stabilized Cap Rate calculated by the SiiLA team represents a rate of return of 8.33% p.a., in line with the average for the region. 

About the properties

Log Betim II is a project still under construction, developed in the BTS model for Mercado Livre, a company operating in e-commerce. The property should be completed in the next few months.

Parque Torino is a Class A property with an occupancy rate of 96.4%. The main tenants in the development are Luft Transportes, Sequoia, Wonder, and FedEx. Parque Torino has warehouses with a floor load of 8 tons/sq meters, ceiling heights of 10 to 15 m and a proportion of docks greater than 1:500.

What is Cap Rate?
Cap Rate is the rate of return an investment property will generate based on its current market value.
SiiLA, through its Market Analytics solution, brings the Cap Rate of all real estate transactions to the Brazilian commercial real estate market.

Know in detail the three types of Cap rates used in the analysis of Transactions available to customers of the Market Analytics plan from SiiLA:
Stabilized Cap Rate: This version of the Cap Rate is the closest to the buyer's return expectations. It is calculated by considering the rental income that the property is expected to generate on a stabilized basis, divided by the purchase price, less below-market rent, or any cost to stabilize (e.g., improvements to the tenant, grace period, rent or capital improvements).

Year 1 Cap Rate: The year one cap rate is calculated by dividing the total net operating income (NOI) the property is expected to generate in the year following the date of the sale minus any amortized costs associated with leasing the property.

Brazilian Cap Rate: This cap rate is calculated by the total revenue the property can generate in the year following the sale, divided by the purchase price. It does not include vacancy adjustments, owner expenses, commissions, or other expenses.