In recent days, the real estate investment fund VBI Prime Properties (PVBI11), managed by BTG Pactual DTVM, and operated by VBI Real Estate, notified investors through a material fact about the conclusion of a partial acquisition of two commercial buildings in the southern zone of São Paulo. These properties are situated in areas considered Central Business Districts (CBDs): Faria Lima and Vila Olímpia.

In this transaction, FII PATC11 sold to PVBI11 the units on the 3rd and 5th floors of The One property in the Faria Lima region. Additionally, PVBI11 acquired the entire 2nd floor and 2 units on the 4th floor of tower B in Vila Olímpia Corporate. The total amount for this acquisition exceeded R$ 101.6 million (US$ 20,9), with around R$ 57.5 million (US$ 11.8 million) paid for The One and R$ 44.1 million (US$ 9 million) for Vila Olímpia Corporate.

In the case of The One, PVBI11 now holds a 13% stake in the asset. Spanning 12,223 m² of private area and delivered in 2012, it is classified as A+ and has a history of low vacancy, according to the SiiLA Market Analytics platform. As for tower B of Vila Olímpia Corporate, the fund increased its stake by 12%, reaching 65% of the asset with this purchase. Developed by Novonor (formerly Odebrecht) and delivered in 2013, Vila Olímpia Corporate consists of two towers, each with a total private area of 18,072 m².

In the rationale for the acquisition, VBI emphasizes the "rental revenue appreciation potential", the prime locations in the city, the replacement cost due to being "difficult-to-replicate high-complexity assets", and the quality of tenants. The same commercial strategy adopted for the FL 4.440 - Acqua asset is expected to be replicated in these new acquisitions, as per the document.

Post-acquisition, the fund's portfolio encompasses over 53,000 m² of Gross Leasable Area (GLA), consisting of commercial buildings in the Faria Lima, Itaim Bibi, Vila Olímpia, and Jardins regions, with a vacancy rate of 4.6%.

Curious about the cap rate of the transactions and the tenants? Explore Market Analytics and request a demo!

*Real to dollar exchange rate as of September 18, 2023, at 8 p.m.