Sale of Stakes to FIIs Accelerates Asset Recycling in Shopping Centers
- As construction costs rise, shopping center owners are finding that selling stakes in existing assets can be more profitable than developing new projects
Brazil's shopping center market is undergoing a new phase of asset portfolio reorganization. Rather than investing in the development of new projects, major industry players are reviewing their portfolios and selling stakes in assets to Real Estate Investment Funds (FIIs), increasing the participation of capital markets in the ownership of these properties.
Data from SiiLA's intelligence team show that the transfer of shopping center assets to FIIs has gained momentum in recent years. In 2025, approximately 566,500 square meters (6.1 million sq. ft.) of Gross Leasable Area (GLA) were transferred to real estate funds, more than double the 264,000 square meters recorded in 2024.
The trend reflects the maturation of a sector that, after decades of physical expansion, is now seeking more efficient ways to monetize stabilized assets.
The shift is also supported by a less favorable environment for new developments. Data from Brazil's Basic Unit Cost Index (CUB), the country's primary construction cost indicator, show that the index reached 312.6 points in May 2026—more than three times the level recorded in February 2007. Put simply, building has become significantly more expensive.
Against this backdrop, selling stakes in mature assets has become a pragmatic solution. Companies can strengthen cash positions, reduce leverage, and finance new projects without necessarily relinquishing operational control of their properties. FIIs, meanwhile, gain access to income-generating assets in established market segments.
Traditional Owners Exit, FIIs Take Their Place
The numbers indicate that this transition is accelerating. Following the slowdown caused by the pandemic, the volume of shopping center GLA transferred to FIIs increased from approximately 49,000 square meters in 2023 to 264,000 square meters in 2024, reaching 566,000 square meters in 2025—the highest level in the historical series.
The trend points to a gradual but meaningful shift in ownership structures. Capital market investors are increasing their exposure to assets that have historically remained under the control of developers and operators.
The phenomenon, however, extends beyond shopping centers. Structures such as build-to-suit and sale-and-leaseback transactions have also been gaining traction in Brazil's real estate market.
Recent examples illustrate this trend. Amazon selected the Rua dos Pinheiros area in São Paulo for its new headquarters in a build-to-suit development. Globo, one of Brazil's largest media companies, has carried out sale-and-leaseback transactions, converting real estate assets into liquidity while maintaining uninterrupted operations.
According to Alfredo Neri, a specialist in real estate transactions and investment structuring at BZCP Advogados, these structures reflect a broader change in how companies view their real estate holdings.
In his view, ownership of the asset is no longer necessarily a strategic objective. Selling properties allows companies to redirect capital toward their core businesses while preserving access to the spaces required for operations.
The growing role of FIIs as buyers of these assets reinforces a broader transformation within the market. As investors seek recurring income streams and companies look for more efficient ways to allocate capital, structures such as sale-and-leaseback transactions, build-to-suit developments, and stake sales are expected to become increasingly relevant.
Market experts expect this trend to intensify in the coming years and expand into other real estate sectors. Multifamily housing is one of the latest examples: despite ongoing operational challenges and returns that are still maturing, the sector is already beginning to be structured through FIIs as a way to attract capital and achieve the scale necessary for the asset class to mature.
Ultimately, the trend points to a quiet but profound transformation. The buildings remain the same, but their owners are changing. Increasingly, real estate is no longer just a bricks-and-mortar business—it is becoming a capital markets business as well.
