TRX in R$876M Mall Deal as Fund Accelerates Diversification
- The transaction would add 43,700 sqm of GLA to TRXF11 and marks the fund’s third deal announced in the same week. Combined, the mall, logistics and office transactions total R$3.23 billion
TRX has signed a memorandum of understanding to acquire stakes in a portfolio of Iguatemi shopping malls for R$876.15 million, in another transaction that has once again placed TRXF11 at the center of Brazil’s real estate investment market. It is the fund’s third major move in the same week, following earlier agreements involving logistics and office properties.
The acquisition would add 43,700 sqm of GLA to the fund and involves stakes in five properties across the states of São Paulo and Rio Grande do Sul. In São Paulo, the portfolio includes Iguatemi Alphaville, in Barueri (Class A); Iguatemi Ribeirão Preto (Class A); and Iguatemi São José do Rio Preto (Class B). In Rio Grande do Sul, the assets are Praia de Belas Shopping Center, in Porto Alegre (Class A), and I Fashion Outlet Novo Hamburgo (Class B).
Iguatemi would remain a partner in the properties and continue to manage the...
Of the total transaction value, R$569.5 million would be paid at closing, including R$219 million in cash and approximately R$350.5 million through the subscription of TRXF11 fund units.
The remaining R$306.7 million would be paid in two installments, 12 and 24 months after the contract is signed. The transaction has a cap rate of 7.04%.
Other TRX Transactions Total R$2.35 Billion in Logistics and Offices
TRX signed other MOUs, or memoranda of understanding, with Log and Cy Capital during the same week. The largest transaction, valued at R$2.14 billion, involves the acquisition of Cy Capital’s portfolio, including a 72% stake in Cyrela Oscar Freire and four logistics assets: Cy.log Barra II (Class B, in Rio de Janeiro); Cy.log Extrema (Class A, in Minas Gerais); Cy.log Dutra II (Class B, in São Paulo); and Cy.log São Paulo V (Class A, in São Paulo).
The identities of the properties involved in the negotiations were exclusively identified by SiiLA’s market analysis team. According to the information disclosed, payment could be made in cash or through the subscription of fund units. The properties would add 251,200 sqm of GLA to the fund. Cyrela Oscar Freire is a Class A+ property, and all floors included in the transaction are leased to Nubank.
Another acquisition currently under negotiation involves a 70% stake in Log Recife II, in Jaboatão dos Guararapes. The Class A property would add 48,000 sqm of GLA to the fund and is fully leased to Shopee, at a rent of R$30 per sqm. The acquisition is valued at R$210 million, with R$130 million payable at closing, including R$55 million in cash and R$75 million in fund units. The remaining R$80 million would be paid in two installments. The transaction has a cap rate of 8.04%.
TRXF11 has historically maintained an asset profile focused on retail properties, particularly stores and supermarkets. Its recent transactions reinforce a strategy to diversify the portfolio while partnering with established market players in each of the new segments it is entering.
The fund has completed approximately R$9.9 billion in transactions over the past 12 months, spanning retail, logistics, shopping malls, education, healthcare and hospitality.
If the agreements currently under negotiation are completed without changes, the fund could become one of the largest in Brazil, with approximately R$8 billion in assets.
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