São Paulo – Bracor Investimentos Imobiliários, a company that has Arabs among its investors, is preparing a capitalisation for a new investment fund evaluated at 262 million Brazilian reals (US$ 157 million). The company republished the market warning on Thursday (14) and started the period of reserves and intention statement, a process that should end on October 29th.
The shares of the real estate fund, called Bracor Renda I Fundo de Investimento Imobiliário – FII, will be negotiated on the Securities, Commodities and Futures Exchange (BM&FBovespa) and the funds will be used for the purchase of 11 prime items of real estate. The enterprises were custom made for rental to large companies, like British Telecom (BT), IBM, DHL Express, Firmenich and Atento.
The real estate to be purchased is Tech Town 5, Tech Town 21, Tech Town 27, Tech Town 30, EPI 01, EPI 02, Liberdade, Cotia, Brás, Brás II and Praia Grande. The leases to large companies, for 92 months, should guarantee return to investors. Profitability is expected to reach 8.9% a year for buyers of the shares, according to the market warning. Sources in the area believe foreign investors should be interested in the offer.
The real estate to be purchased, already built, belongs to Specific Purpose Societies (SPEs), companies established for the construction of the enterprises alone. The SPEs were established by Bracor and this kind of operation – offer of quotas to the market after the real estate is complete – guarantees investors no risk as the lease contracts are already guaranteed.
The lead coordinator of the operation is bank BRG Pactual and the administrator of the fund will be Ourinvest Bank. Bracor is denominated the project real estate consultant. Among the group’s shareholders are Royal Group UAE, from the Emirates. The conglomerate belongs to the royal family of Abu Dhabi and invests in some 60 companies in the emirates, in the areas of media, trading, financing, real estate, manufacture, construction and technology.
Other Bracor shareholders include Equity International, which is a founding partner and was established by Sam Zell, one of the largest investors in the area in the world, Carlos Betancourt, who is also a founding member, Morgan Stanley Real State, W.R.Berkley Corporation, as well as Itaú BBA. The company has been in existence for four years and, since it opened its doors, has invested over 600 million reals (US$ 361 million) of its own capital. In late July this year, the company had 45 properties leased to large companies in long-term contracts.
Bracor Renda I Fundo de Investimento Imobiliário – FII was constituted in August this year as a closed condominium. It is therefore not possible for investors to recover their quotas in case they want to leave the business. For that, they must sell their participation. The requests for reserves for acquisition of the quotas in the fund may range from 10,000 reals (US$ 6,000) to 300,000 reals (US$ 180,000). The due date of the operation is November 19th.
*Translated by Mark Ament
