2024-04-16 19:07:47
BTG11 — BTG’s logistics real estate fund — has just announced that it has signed a letter of intent to purchase a portfolio of 11 logistics warehouses on the outskirts of São Paulo.
The acquisition will cost R$1.75 billion, with 65% (R$1.14 billion) paid at the closing of the transaction and the remainder 18 months following completion. closingcorrected by IPCA.
BTG said that the 11 assets have a total area of 550 thousand square meters and that 93% of revenue comes from warehouses located within a radius of up to 60 kilometers from São Paulo.
BTG did not disclose who the seller was, but a real estate market source told Brazil Journal that the most obvious suspect is GLP, given the size of the portfolio and the fact that the manager was looking to sell part of its assets in Brazil to recycle capital.
GLP has around 2 million square meters in warehouses in Brazil — and, therefore, would be selling around a quarter of the portfolio in this operation.
Other potential sellers for a portfolio of this size would be Log — but the company has recently signed an agreement to sell assets to another BTG fund — and Sanca — which has 1.5 million square meters in warehouses, but which is not seller today, according to the source.
The transaction comes two months following BTLG11 raised R$1.2 billion in its thirteenth issuance of shares — an amount that will be 100% allocated to this transaction.
To pay the remaining R$600 million, the fund will need to issue a new issue or sell some assets.
Before the issuance, BTLG11 had a net worth of R$2.8 billion, allocated in 23 logistics warehouses (mostly in São Paulo) with a gross leasable area of 870 thousand square meters.
Since the transaction was made with a seller financethe fund will have a higher profitability with these assets until the final installment is paid, as it will be receiving 100% of the rental income even though it has paid only 65% of the total amount.
BTG said that the cap rate of the purchase was between 9% and 10%. The fund pays today a dividend yield of 9.1%.
Pedro Arbex
1713302557
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