Top Office Deals: Kinea Leads the Chart with a Rio de Janeiro Property Purchase at R$ 356 Million

In recent days, we've been covering the largest portfolio and shopping center transactions that unfolded in the Brazilian market throughout 2023. Today's report unveils a top 5 showcase of noteworthy office property transactions. Let's dive in!

1) Sale of Centro Empresarial Botafogo for R$ 356 million

The standout transaction of 2023 is a pivotal component of São Carlos' substantial R$ 865 million portfolio sale. The focal point is the Centro Empresarial Botafogo, a standalone jewel commanding R$ 356 million, now under the ownership of the Kinea Oportunidade Real Estate (KORE11) fund. This class A asset, nestled in Rio de Janeiro's Orla region, spans 17,000 m² with an 8.01% vacancy rate.

2) Sale of Morumbi Office Tower for R$ 285 million

Securing the second spot on the list, São Carlos and Kinea orchestrated a R$ 285 million transaction for the Morumbi Office Tower. This acquisition by the real estate investment fund Kinea Oportunidade Real Estate (KORE11) is part of São Carlos' portfolio sale. Situated in São Paulo's Chucri Zaidan region, this class B property encompasses 19,000 m² with a current occupancy rate of 82.67%.

3) Sale of Oi Leblon building for R$ 205 million

Breaking headlines just last week, the Oi Leblon building, formerly belonging to the telecommunications giant Oi, changed hands for R$ 205 million. The lion's share, a significant 98%, was acquired by HSI – Hemisfério Sul Empreendimentos. The remaining 2% found equal distribution between Performance Tenerife Empreendimentos Imobiliários and SIG 06 Empreendimentos LTDA. Despite Oi's divestiture, the entire 12,000 m² remains 100% leased. This class B asset is positioned in Rio de Janeiro's South Zone.

4) Sale of six floors of Vila Olimpia Corporate – Tower B for R$ 202 million

The Vila Olimpia Corporate – Tower B takes center stage in the fourth-largest transaction of 2023, involving the sale of floors 7 to 12 for a substantial R$ 202 million. Originally owned by the Vila Olimpia Corporate FII (VLOL11) fund, these floors now belong to the VBI Prime Properties fund (PVBI11). Nestled in São Paulo's Vila Olimpia region, this class A+ development boasts a 65.29% stake in the fund and currently reports an 11.61% vacancy rate across its 9,700 m². Notably, luxury brands such as Hugo Boss and Louis Vuitton have secured tenancy on these floors.

5) Sale of Jardim Europa building for R$ 150 million

In a deal totaling R$ 150 million, São Carlos Empreendimentos successfully divested the Jardim Europa building in São Paulo to M.A.R Tokio Desenvolvimento Imobiliário SPE. This class B asset, located in the Itaim Bibi region, spans 7,392 m² with an impressive 90.91% occupancy rate. Noteworthy tenants include Grupo Globo companies, housing publications like Valor Econômico and Vogue.