The real estate investment fund Pátria Log — HGLG11 — announced on Tuesday, the 20th, that it has acquired a 623,000-square-meter plot in Simões Filho, Bahia. The fund plans to develop a industrial property on this site, which will be fully leased to Mercado Livre.

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The plot, located on BA-093 near the Camaçari industrial and logistics hub, was purchased through a physical swap model. In this arrangement, Special Purpose Entities (SPEs), where the fund is the majority partner, acquired the property without an immediate financial outlay.

The project, with a gross leasable area (GLA) of 132,300 square meters, will be built in two phases. The first phase will develop 39,031 square meters, expected to be completed by the end of June 2025. The second phase, slated for completion in September 2025, will add 47,305 square meters. Combined, the 86,336 square meters will be available exclusively for Mercado Livre, following the Built To Suit (BTS) model for the e-commerce giant.

According to the announcement, the lease agreement between Pátria Log and Mercado Livre was signed on August 1st.

In addition to the distribution center for Mercado Livre, the plot has the potential for a second warehouse of 46,000 additional square meters. Pátria Log indicates that this project is currently in the negotiation stage and will proceed based on demand for speculative or custom-built properties in the area.

“Once the BTS Meli project is fully developed, the Fund will hold an estimated 84% stake in the completed property. The Fund will not receive any payments until the warehouse is fully developed and handed over to the tenant. The projected Yield on Cost (YoC) for Phase 1 of the BTS Meli project is approximately 10.2%,” stated Pátria Log — HGLG11 — in its market announcement.