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MG should surpass the RJ logistics condominium market

SiiLA Brasil CEO projects that the state of Minas Gerais will outdo Rio in square meters of warehouses within two years

On Wednesday (13), SiiLA Brasil CEO Giancarlo Nicastro joined the live panel INDI Talks Real Estate Business Attraction, promoted by INDI, the Minas Gerais Investment and Foreign Trade Promotion Agency.

The panel was mediated by journalist Estevão Damázio and also had the participation of João Paulo Braga, CEO of INDI, André Vitória, Executive Director of Finance and IR at Log Comercial Properties and Adriano Carvalho, Director of Investment Attraction at INDI.

During the panel with the focus on logistics of real estate businesses development in the region, Braga stressed that the cities with the great capacity to attract investments are the ones where the real estate sector ends up being more dynamic, contributing to the region's success in attracting other sectors.

The Log executive reinforced that the logistics, infrastructure, and e-commerce sectors are increasingly seeking to be closer to the big centres. The company observes the movement of the logistics condominium market, internalizing to be closer regions with attractive population density.

According to Nicastro, SiiLA Brasil's perspective is that the state of Minas Gerais outdoes Rio de Janeiro in logistics condominiums in about a year and a half, becoming the second-largest state in terms of high-end warehouses, only behind the state of São Paulo. São Paulo alone concentrates around 11 million square meters of properties of this type out of 18 million areas spread across Brazil.

"It's a market in full expansion", said the CEO of SiiLA Brasil. According to the executive, the state of Minas Gerais concentrates approximately 1.5 million square meters in logistics condominiums, and 2021 alone has already received around 600 million reais in investments in the sector. By the end of next year, another 1.2 billion reais should be invested in logistics condominiums in the state. "We are going from 1.5 million square metres to add almost 700 to 800 thousand square metres, and there is still a lot to come," said Nicastro.

"Minas was out of the game for a long time," said Carvalho. According to INDI's Investment Attraction Director, the positive moment for attracting investments to Minas comes from improving the entrepreneurial mind in the state. "Brazil is a patchwork from a tax point of view, and Minas understood this and adjusted the rules. Investors can know the rules of the game even before entering the field. It's a big difference", he highlighted.

Vitória reinforced that the tax issue predictability is a very important factor for companies' decision making when choosing a region to set up their businesses and stressed the importance of the logistics warehouse industry for the democratization of access to products, which they previously had the transport made impossible by the logistical modalities that we had until then.

The panel ended with optimistic perspectives for 2022. "For the e-commerce, warehouse and logistics sector, the pandemic accelerated three years in three, four months. It was a sector in which we cannot speak of crisis, as the vacancy rate has been decreasing," said Nicastro. According to the exec, Minas Gerais has only 2.6% availability in logistics condominiums.

Log also believes that 2022 should keep the pace of growth in the sector. According to him, the company should deliver 700,000 square metres of gross leasable area in logistics condominiums by the end of next year, of which 70% are already pre-leased, signalling a good moment in logistics.

Watch it full:

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