Vinci and Fulwood sign an agreement to invest R$1 billion in warehouses

After they get the assets ready and leased, the portfolio should have a value between R$2 billion and R$2.5 billion

By: SiiLA News

09/24/2020

Resource manager Vinci Partners and Fulwood Condomínios Logístico signed a partnership for an investment of R$1 billion in A + standard warehouses in the State of São Paulo and in Extrema (MG). When these assets get ready and leased, the joint venture portfolio should have a value of between R$2 billion and R$2.5 billion. The parties’ decision-making about the creation of the “joint venture” got strengthened by e-commerce companies’ warehouse demand, auto parts manufacturers, and the food industry. The partnership will provide the development of speculative properties without a prior lease. If there is demand, they will also build in the custom-built model (build to suit).

The expectation is that the investment will result in a portfolio of 500,000 square meters to 600,000 square meters of warehouses to be developed in three years, with the sale of assets within four years. Each of these periods can be extended by an additional year.

A fund of up to R$ 800 million will be raised to finance the investments, and the remaining funds will come from the debt market. "We saw the opportunity to raise a new fund. The investor market is increasingly interested in taking on a bit more risk and in the returns of the real estate sector", says Leandro Bousquet, a partner at Vinci responsible for real estate investments.

Read the full story (in Portuguese).

Source: Valor Econômico

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