VBI Real Estate's FII expands its portfolio with iconic mixed-use development in São Paulo
VBI Prime Properties (PVBI11) closed the acquisition of 20% of Tower B of Complexo JK, an iconic mixed-use development in the city of São Paulo, for R$30,150/square metre, for the amount of R$185 million.
The corporate buildings FII is managed by VBI Real Estate, a fund manager 100% focused on the Brazilian real estate sector. BTG Pactual, the fund's administrator, announced last Tuesday, June 30, in a material fact that it sold part of the asset and will still control 80% of the project."This is a very emblematic acquisition and one that reflects very well the strategy of the PVBI11 fund", said Rodrigo Abbud, founding partner of VBI Real Estate, in an interview with the newsroom of SiiLA Brasil.
According to the administrator, the main factors that influenced the decision were the quality of the asset (being an A+ class development), location, occupancy, technical specifications and price. "We are partially acquiring the best mixed-use complex in São Paulo at replacement price," he declared."For us, location, quality and governance are fundamental, and these pillars attract the profile of the occupation, which is composed of tenants who are less susceptible to the volatility of the macroeconomic scenario," added Abbud.
According to data and analysis from the SiiLA Brazil commercial real estate market research platform, Tower B of Complexo JK is 100% leased, having tenants such as Johnson & Johnson, Body Tech and Regus Brasil.
Located at Avenida Presidente Juscelino Kubitschek, 2041, Tower B was built by WTorre, following high standards of sustainability and technical specifications standard A+ real estate and premises that grant international development LEED Gold certification. Torre B is fully integrated with Shopping JK, Teatro Santander and the other towers of the complex.
Speaking about the future of work and trends, Abbud believes that work environments will continue to be relevant for companies: "Hybrid work is already a reality. What we are going to have is a change regarding the use of corporate spaces. The physical office has always had and will continue to play its role in corporate culture".
"In my view, once the vaccination process is accelerated and the hybrid occupation returns, offices will be lacking. Suppose today we have the regions of Faria Lima and Itaim with low vacancy rates, around 10%, even at a time of greater market instability. In that case, it means that there will be a shortage of offices in the recovery", concludes the executive.
With this market movement, PVBI11 accounts for its fourth acquisition since the IPO carried out by the fund in June 2020, raising R$ 970 million during the peak of the pandemic. The asset portfolio already constituted of projects FL4440, in Faria Lima, Parque Tower, Jardins, and the asset still under construction, Union Faria Lima, in Itaim Bibi. According to data from SiiLA Brasil, both FL4440 and Parque Tower are 100% occupied.