In a New Transaction, LOG Sells Brazilian Assets for R$ 484 Million to FII BTG Pactual LOGCP
- This is the fifth transaction announced by LOG this year, totaling R$ 1.5 billion and 413,554 square meters of GLA
LOG Commercial Properties and Participations (LOGG3) announced last week a proposal to sell LOG Fortaleza III in Ceará and LOG Viana II in Espírito Santo to BTG Pactual LOGCP Investment Fund. Both properties are high-end, classified as A+ and A, respectively.
The announcement states that the transaction, negotiated for R$ 484,167,011, encompasses a gross leasable area (GLA) of 149,000 square meters. The sale of the properties recorded cap rates of 8.77% for LOG Fortaleza III and 9.69% for LOG Viana II, both above the average cap rate of 8.30% recorded between 2023 and 2024, according to an analysis of transactions nationwide. Subscribers to the Market Analytics platform by SiiLA have complete access to transaction information and cap rate analyses.
Read more: After divesting assets, LOG CP's net profit in 2023 was 51% lower than the previous year.
According to the announcement, the sale is part of the company's strategy to optimize its assets and enhance its financial results. The properties are part of the company's portfolio, known for developing logistics assets in various regions of the country, but were not included in any Real Estate Investment Fund.
LOG also reported that this was the fifth transaction of the year, totaling R$ 1.5 billion and 413,554 square meters of GLA. The conclusion of the transaction is currently under review by regulatory authorities.
BTG Pactual LOGCP, the buyer of the assets, emphasizes in its feasibility studies the pursuit of decentralized assets in partnership with LOG CP and the rise of e-commerce in the country. The fund began with three assets: LOG Recife, LOG Fortaleza, and LOG Goiânia, with Amazon as one of its main tenants.
LOG FORTALEZA III
LOG VIANA II
LOG Viana II in Espírito Santo is a Class A property delivered in 2022, featuring a market value of R$ 21.30/m² and tenants such as Hypera Pharma and Amazon. The Espírito Santo market currently has 446,000 square meters of logistics space, with a vacancy rate below 10%.
*As of the publication of this article, there have been no statements from LOG CP or BTG regarding the transactions.
