Barzel and ELD will invest R$ 500 million in warehouses in the wake of e-commerce

Barzel Properties and ELD Land & Development signed a partnership to build logistics centres, with an initial investment of R$ 500 million. The decision to start the venture came from leading retailers in the country after mapping out their growth plans. What was revealed in the conversations was the strong demand for new distribution centres, especially for fast e-commerce deliveries beyond São Paulo.

The first five lots are in the final phase of acquisition, in the metropolitan regions of Belo Horizonte, Rio de Janeiro, Salvador and Porto Alegre, in addition to Greater São Paulo, in Cajamar – the central logistics hub in Brazil. The first project, in Minas Gerais, will have an initial area of 68,000 sq metres, with the possibility of expansion to up to 200,000 sq metres. The works will be ready from the second half of 2023, and pre-leases are close to being closed.

The move marks the expansion of Barzel in the branch of sheds. Founded in 2015 by Nessim Sarfati (ex-Cyrela), the company has R$4 billion of real estate assets under management, including the Thera Corporate and Pinheiros One (former Odebrecht headquarters), both in the city of São Paulo, and CD01, GPA's main distribution centre, at the beginning of Rodovia Anhanguera.

ELD operates in real estate development in the logistics and industrial sectors. The business was founded by Clarisse Etcheverry, who has been in charge of Prosperitas and LPG with over 20 years in the business. The resources for the project will come from a new fund, with capital from a foreign investor partner of Barzel yet to be disclosed.