TRX buys São Paulo offices in $65M deal with lease to 2054

The total value of the transaction may reach approximately R$ 328.4 million, considering both the acquisition price and additional investments required to adapt the space to the hospital’s needs. According to SiiLA’s intelligence team, the estimated cap rate for the deal is 7.9%. 

Per the filing, R$ 219.4 million will be allocated to the property acquisition, while R$ 109 million will be invested in tenant-requested improvements. 

With this transaction, TRXF11 adds a tenant under an atypical lease agreement with a term extending to 2054, ensuring long-term income visibility for the fund. Additionally, although the contract includes an initial rent-free period and temporary rent discounts, these effects will be offset by minimum income guarantee mechanisms paid by the seller, with no impact on TRXF11’s cash flow generation. 

Although values were not officially disclosed, SiiLA’s market intelligence team estimates that the rent paid by Sírio-Libanês is around R$ 220 per square meter. According to the property owners, the rent is composed of a fixed component, which will remain in place until the end of the contract, and a variable portion.

The 30-year lease signed by Sírio-Libanês includes a three-year rent-free period ending in September 2026, in addition to rent discounts extending through February 2027.

Located in São Paulo’s Chucri Zaidan region, the asset is part of a high-end mixed-use complex totaling 20,300 square meters, of which 10,000 square meters are occupied by the hospital. The remaining area remains under the ownership of Brookfield.