UBS Reopens Discussion on Credit Suisse's Real Estate Management Sale: Over R$ 10 Billion in Assets Under Management
- With over R$ 10 billion in assets under management, CSHG oversees eight real estate investment funds (REITs), including HGLG11, regarded as Brazil's largest logistics-focused REIT.
Swiss bank UBS is in the process of resuming the sale of Credit Suisse Hedging-Griffo (CSHG), the real estate fund manager under Credit Suisse in Brazil. This development was first reported by Brazil Journal and covered by other national media outlets such as Valor Econômico.
Even prior to the merger, the sale of this division had been proposed and initiated in late 2022. Now, with UBS's acquisition of Credit Suisse, divesting the real estate portfolio of CSHG is seen as a strategic move to streamline operations in the country. This initiative aligns with UBS's focus on the wealth management sector.
With over R$ 10 billion in assets under management, CSHG oversees eight real estate investment funds (REITs), including HGLG11, regarded as Brazil's largest logistics-focused REIT, with a net worth of R$ 3.5 billion and 365,000 unit holders. In fact, the fund recently finalized the acquisition of a GTIS portfolio for R$ 1.37 billion, as reported by REsource.
In addition to HGLG11, Credit Suisse's fund management arm operates seven more REITs, namely: CSHG Real Estate – HGRE11, CSHG Recebíveis Imobiliários – HGCR11, CSHG Renda Urbana – HGRU11, CSHG Imobiliário FoF – HGFF11, CSHG Prime Offices – HGPO11, Castello Branco Office Park – CBOP11, and CSHG Residencial – HGRS1.
For instance, within the HGLG11 portfolio lies the HGLG Louveira industrial property, in which the REIT holds a 90% stake. This upscale (A+) development spans over 61,000 m² in Jundiaí (SP) and boasts prominent tenants like Ambev.
Another asset in Jundiaí is the HGLG Itupeva – Bloco I industrial property. Also classified as A+, this complex spans over 59,000 m² and, as per data from the SiiLA Market Analytics platform, achieved 77% occupancy by the end of 2Q23.
The HGLG Ribeirão Preto, encompassing over 62,000 m² and fully leased, is yet another Class A+ asset. It houses significant players in e-commerce, transportation, logistics, and various other sectors.
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