Tellus Properties announced on Monday (25) that the vacancy rate of its Real Estate Investment Fund (TEPP11) dropped from 3.53% to zero, following the leasing of two units in the “Torre Sul” development located in Berrini, the CBD region of São Paulo.

According to Daniel Takase, Head of Office & Mixed Use at Tellus, achieving zero vacancy is a result of long-term commercial and management efforts, always grounded in practicality. "This has been an ongoing effort since the fund's IPO regarding property management and asset improvements. In practice, we are reaping the benefits of these investments", he says.

Takase also emphasizes that with the decline in Selic rates, this is a favorable time for funds, not only for REITs but for the entire market. As the basic interest rate drops, real estate investment funds become more attractive in the long run, according to experts.

"I see that the moment is more favorable, with the reversal of the Selic cycle. All funds are preparing for a new window of fundraising, offering, and growth, and this will be no different for our fund. We are ready to grow", comments the executive.

According to the material fact regarding the lease, after a 9-month grace period, there will be a distribution of income resulting in R$ 0.02 per share of TEPP11.

On the SiiLA Market Analytics platform, details about this lease can be accessed! Visit: siila.com

Assets within the Fund:

TEPP11 has a 50.96% stake in the recently leased development, Torre Sul. The asset is Class A, delivered in 2004 with 14,055 m² of private area. The property is located near Ponte Estaiada and Berrini station on CPTM's Linha9-Esmeralda.

In addition to Torre Sul, TEPP11 holds interests in four other commercial properties. These include Passarelli, a Class B asset located in Pinheiros near the eponymous neighborhood station, with a 53.85% stake in the fund. The Fujitsu, on the renowned Rua Treze de Maio, is another Class B included in the fund (50%); as well as stakes in the São Luiz towers, located in Vila Olímpia on the bustling Juscelino Kubitscheck avenue; and 36.36% of Timbaúba, in the Bela Vista neighborhood, another Class B.

"In terms of the commercial aspect, we are improving contracts, leases, tenant profiles for the fund, while maintaining a more realistic, conscious, and low-leverage management approach", concludes Takase.

Read also: Tellus Investment Management Undertakes Headquarters Relocation while Maintaining Prime Financial District Presence