Valora’s REIT negotiates sale of stake in Edifício Cidade Jardim for R$ 345 million

Since the acquisition, the Selic rate has risen from 10.75% to 15% per year, making credit more expensive and reducing investor appetite for brick-and-mortar REITs like Valora’s, which rely on raising capital through new issuances. As a result, the fund had to extend its short-term debt, and with a portion of the debt linked to CDI, financial costs increased, adding pressure on results.

Even with these challenges, the REIT reported that it managed to increase the property’s rental income by 24.4% over a period of a year and a half. However, this was not enough to offset the debt burden.

Given this scenario, Valora stated that the sale is the most efficient alternative, especially because the proposal represents a 21.9% appreciation over the acquisition price and an annual return of 22.9%.

Exclusive analysis by the Market Analytics platform shows that, for high-end properties (A+ and A) in the Itaim Bibi and Faria Lima regions, the average transaction value rose from R$ 12,000/m² in 2015 to R$ 44,000/m² in 2024. The proposal received by Valora, of R$ 46,200/m², is aligned with this upward trend and within the average recorded over the past five years.

According to Market Analytics, from SiiLA, the transaction in Cidade Jardim indicates a Cap Rate of 8.10%.

Located in the Itaim Bibi region, the A+ class 10-story building has a total area of 13,381 m², with 396 parking spaces and an average floor plate of 1,347 m².

With a market value of R$ 309.55/m², the property had always maintained full occupancy since 2015, until a tenant exit in 1Q25 raised vacancy to 9%.