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

Conduent’s departure increases vacancy at HOFC11, highlights weak office demand in Santo Amaro, and adds pressure to sell Birmann 20 below its appraised value

André Freitas, CEO and CIO of Hedge Investments

By: SiiLA News

04/30/2026

Hedge Investments’ real estate investment fund, HOFC11, announced the contract termination of call center company Conduent at Birmann 20, a Class A+ office building located in the Santo Amaro district of São Paulo. The company occupied 1,800 m².

According to the material fact filing, the vacated area represents 11.7% of the fund’s gross leasable area (GLA) and 16.1% of HOFC11’s real estate income. Even with a six-month notice period and an early termination penalty, the property will continue to post a high vacancy rate of 87.7%.

At this stage, Unisys and Dinaco remain the building’s only tenants. As of publication, Hedge Investments had not commented on the matter.

Regional Challenges

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.

Potential Sale

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.

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