Recent REIT Deals Highlight Prominence of Office Towers, including Pátio Malzoni, OF - Oscar Freire Office, and Concórdia Corporate!

On Brigadeiro Faria Lima Avenue in São Paulo, the Catuaí VBI Triple A real estate fund (BLCA11) has entered into a sale commitment for the 11th floor of the North Tower and an additional 46 parking spaces in the Pátio Victor Malzoni , with a total value of R$ 96 million.

This transaction took place in October 2023, with VBI's fund selling an area of 1,372 square meters at a rate of R$ 70,117 per square meter. Around two years ago, in September 2021, the fund had acquired six floors in the North Tower, including the 11th floor, for R$45.023 per square meter.

Pátio Malzoni is one of the most iconic developments in São Paulo, located on Faria Lima Avenue, and it counts Google, BTG Pactual, and other notable companies among its tenants.

In the neighboring state of Minas Gerais, the office building Concórdia Corporate, situated in Nova Lima, is part of the Pedra Negra Fund's (FPNG11) portfolio. The transaction occurred in mid-October and was facilitated by BR-Capital, the fund's representative, which successfully completed the acquisition of TS-21 Participações through Tishman Speyer, with assistance from Grow Real Estate Investments.

Another significant transaction in October was the sale of OF - Oscar Freire Office, a class A property in São Paulo. BTG Pactual announced in a relevant notice that the Corporate Office Properties (COPP11) entered into a purchase and sale agreement for the property at a value of R$ 125 million.

However, not all transactions went through in October. In the early days of the month, Alianza Trust Renda Imobiliária (ALZR11) reported that the sale of the Araporé 655 asset, located on Marginal Pinheiros, fell through. The transaction had been announced in June, but in October, the undisclosed buyer withdrew from the deal worth R$ 19.3 million.

How was the month of October for REITs?

October had both favorable and unfavorable moments in the REIT market. On average, according to the Ifix - the index of the most traded REITs on B3 - it closed with a decrease, reaching a low of 3,154.44 points, the lowest since June of this year, a decrease of 1.97%.

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