Tenant Exit Increases Vacancy at Birmann 20 and Pressures Hedge’s Fund

Now, Hedge Investments faces a challenge greater than the vacant space at Birmann 20: the region’s attractiveness. Currently, Santo Amaro lacks demand for leasable office space. With only 163,000 m² of total inventory across Class A+, A, and B buildings, the region has a vacancy rate of 54.2%.

In an even more detailed segment, Santo Amaro’s Class A+ office properties — just five assets including Birmann 20 — post a vacancy rate of 74.9%, even before accounting for Conduent’s departure.

Recently, Birmann 20 received a purchase offer of R$72 million. The key point disclosed in the filing is that the transaction value is estimated to be roughly 25% below the property’s appraised value.

According to the document, the discount is related to the transaction’s payment structure, which will be made in installments and adjusted according to financial terms, including projected CDI discount rates and brokerage costs. Management stated that it expects to reduce this impact throughout the transaction process.

As a result, shareholders are now dealing not only with tenant loss and rising vacancy within the fund, but also with the discounted sale of a difficult-to-lease asset.