Raizz Capital Fund Acquires Land for Industrial Property Development in the state of SC for R$ 11.5 Million

The land is located in Itajaí, Santa Catarina, a region with access to two major highways, BR-101 anda SC-486

Gabriel Paganini Checon, founding partner of Raizz Capital

By: SiiLA News

05/27/2024

Raizz Capital has just closed a deal that, according to the company, will be profitable for investors in its development fund RZZI11. In a relevant fact released on the 20th, the company announced the purchase of a 96,000 m² plot of land in Itajaí, Santa Catarina, for R$ 11.5 million.

According to the document, a 45,000 m² industrial asset will be constructed on the land and is expected to be completed within 16 months. The company's projection is that, once fully leased, the property will provide investors with a gross return of 12% per year, or R$ 10 per share.

RZZI11 is a new development fund in the market, and this transaction is the first on record since its IPO in March 2024, with a share price of R$ 1,000. The fund is dedicated to the development of industrial assets.

According to Guilherme Nunes, partner at Raizz Capital, the complex will be speculative and will feature modules of up to 1,800 m². Additionally, Nunes revealed that the total investment will be R$ 120 million.

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With a high volume of leases in recent years, vacancy in the Itajaí region has been zero since 2023

According to SiiLA's intelligence team, Raizz made a good acquisition, as they paid about R$ 119/m² in an area lacking new assets and with zero vacancy.

Market Analytics data shows that the last delivery of Class A+, A, or B assets was in 2022. Currently, the region has a stock of 315,000 m² that are 100% leased. Itajaí has the largest stock of industrial properties in Santa Catarina, accounting for 37.3% of the state's total stock of 846,000 m².

Consulted experts believe that the property will meet suppressed demand and that Santa Catarina is in a privileged position, with access to the states of Rio Grande do Sul and Paraná. Additionally, the city of Itajaí is intersected by two major highways, BR-101 and SC-486.

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