A slope collapse occurred last week at the construction site of Potria Logística FII’s (HGLG11) warehouse project in Simões Filho, Bahia. The asset is being developed as a built-to-suit (BTS) facility for Mercado Libre. No injuries were reported.

The development is planned for two warehouses. The first, G100, is being built in two phases: Phase 1 was delivered in July, adding 39,031 m² of gross leasable area (GLA). Phase 2, now in its final construction stage, is scheduled for delivery on September 30 and will add another 34,379 m².

The second warehouse, G200, is still at the project stage. With a projected 46,000 m² of GLA, it does not yet have a defined construction or delivery timeline.

The impact of the incident on the project’s delivery schedule remains unclear. In a recent filing, Patria confirmed that Phase 1 of the G100 continues to operate normally.

In a statement to REsource, Patria said:

“The incident with the containment occurred on Monday (18) at the HGLG11 project in Simões Filho (BA), following heavy rainfall over the weekend. There were no victims or environmental impacts. The warehouse itself was not affected, only the containment area under construction. All corrective measures are under the responsibility of the contractors and are being monitored by geotechnical consultants. It is important to note that, given the contractor’s contractual model, the Fund will not be financially impacted by the correction of this accident.”

While Patria stressed there will be no financial impact on the fund or its shareholders, the collapse raises concerns about potential delays for Mercado Libre’s operations in Brazil. The e-commerce company did not respond to REsource’s request for comment.

Footage of the collapse has circulated online in recent days.

Watch the video: