LVBI11 sells industrial property in Brazil for R$103 million
- The Patria Real Estate Fund sells off its last Class B asset, successfully making its portfolio 100% premium industrial properties
In a material fact disclosed last Tuesday (September 29), real estate investment trust (FII) LVBI11 (VBI Logístico) announced the sale of VBI Log (formerly GLP), located in Itapevi, São Paulo, for R$103.7 million. With the transaction, the FII divests its last Class B asset, leaving its portfolio concentrated in Class A industrial properties.
According to SiiLA’s Market Analytics, the industrial asset has 34,900 square meters of gross leasable area (GLA), a 10-meter clear height, and is located 40 kilometers from downtown São Paulo.
As part of the transaction, LVBI11 reported a profit of R$14.9 million from the sale, equivalent to R$0.93 per share. The industrial property was acquired by the FII in December 2019 for R$82.9 million. Adjusted for IPCA inflation, that amount would be equivalent to R$120.3 million today.
The transaction will not be paid entirely upfront. The new owner will pay...
A good deal?
According to the SiiLA Benchmark Index (SBI)*, which tracks the economic performance of physical real estate assets, the assessment of property transactions can take into account not only the sale price, but also the income generated by the asset during the holding period, market appreciation and the specific characteristics of the property.
Since LVBI11 acquired the property in December 2019, Brazil’s industrial real estate market has undergone changes in property prices, rents and vacancy rates.
At the time, the average value estimated by the SBI Industrial Properties Index was approximately R$1,749 per square meter. By the second quarter of 2026, that benchmark had reached R$3,120 per square meter, an increase of approximately 78%.
Over the same period, average market rents in the region rose from R$16.21 to R$26.02 per square meter, while vacancy rates at industrial properties declined from 17.6% to 4.4%.
LVBI11 sold the property against this backdrop for R$103.7 million, or approximately R$2,969 per square meter.
That figure was 4.8% below the R$3,120 per square meter estimated by the SBI for Brazil’s industrial real estate market in the second quarter of 2026.
Another transaction
Another transaction completed a few months earlier provides a comparison between two assets located in the same municipality.
In July 2026, real estate investment trust Pátria Log (HGLG11) completed the sale of HGLG Itapevi I and an adjacent parcel of land for R$119.8 million, equivalent to approximately R$3,494 per square meter.
The sale price was 7.9% above the property's latest appraisal, while the internal rate of return (IRR) disclosed for the transaction was 27.4% per year. In the case of LVBI11, the reported IRR was 10.3% per year.Both transactions involved assets located in Itapevi and were completed within a few months of each other. The sale prices per square meter and the IRRs disclosed by the FIIs, however, were different.
In the case of LVBI11, the FII reported a cash-basis profit of R$14.9 million from the sale. The manager also disclosed a multiple on invested capital (MOIC) of 1.77x, taking into account the sale proceeds and the asset's carry.
The property was acquired by the FII in 2019 for approximately R$82.9 million and sold for R$103.7 million. The difference between the two amounts represents a nominal gain of approximately 25%.
After adjusting the acquisition price for inflation, the resulting amount would be higher than the property's sale price.
During the period the property remained in LVBI11's portfolio, it also generated rental income for the FII. The material fact states that, upon execution of the definitive deed, the buyer assumed the position of landlord under the existing lease agreements and became entitled to the rents and other receivables related to the property.
In the HGLG11 transaction, meanwhile, the sale price was above both the property's latest appraisal and the R$3,120 per square meter estimated by the SBI for Brazil's industrial properties market in the second quarter of 2026.
When compared with SBI indicators, the data from the two transactions show different sale prices per square meter and different IRRs for assets located in the same municipality and transacted within a few months of one another.
In its analysis of the economic performance of physical real estate assets, the SBI considers both the income generated by properties and changes in their values over time.
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