The SiiLA newsroom spoke with Barzel executives to better understand the reasons for this move
Last week, Barzel Properties announced the acquisition of Sompo building, located at Cubatão Street next to Av. Paulista. To better understand this acquisition, SiiLA spoke to Bruno Turaça, Barzel's Portfolio Director, and Gustavo de Melo, responsible for the company's corporate real estate acquisitions.
According to the executives, one of the main reasons for the building acquisition was the location of the business. Its proximity to Avenida Paulista makes it competitive with other commercial buildings. According to data from the Market Analytics platform, Paulista today has a 16.7% rate of vacant spaces only (considering assets classified as A+, A and B, or general market).
Also, according to SiiLA monitoring, there are more than 90 commercial buildings, which add up to almost 850,000 sq metres of office area in the Paulista region, which includes the entire length of the avenue plus the parallel ones.
"It is a region in which we always wanted to have some participation. We know that Paulista is not an easy region to find assets of this type available. An incredible location, surrounded by services, transport, and maintenance that only a single user could do. After analyzing all this, we had to embrace this opportunity", said Turaça.
About the venture
The Sompo building is a 27-year-old asset with a leasable area of approx. 12,700 sq metres and 16 floors. Sompo Seguros occupies most of its floors, but the building has three floors available for rent. With slabs of almost 800 sq metres, the building has air conditioning, a building management system and a generator for 100% of the common and private areas.
Barzel already has its plans for the asset, according to Gustavo de Melo: "The initial plan for this asset is a retrofit, despite being a development that is in excellent condition inside and out. This process is part of our DNA, and we want to take the best that the building can offer, revitalizing the entrance, bringing more functionality, and renovating the lobby. We are planning changes in line with what we did in the Pinheiros Corporate building, which worked well within our portfolio".
Regarding Barzel Properties' plans for the coming quarters, the company remains attentive to all opportunities that may arise during the market cycle, analyzing the best time to purchase, maintain or divest any asset in the portfolio.
"We understand that it is a favourable moment to buy, we believe in this moment of recovery of the offices. This is happening, and the market feels it. We are looking for good investment opportunities in similar and well-located buildings like Sompo", completes the executive.