GTIS Partners, through its GTIS Brazil Logistics Real Estate Investment Fund, acquired USD248m in Real Estate Assets in Brazil.
(Press Release) GTIS Partners LP, (“GTIS”), a real estate private equity firm headquartered in New York City, with offices in São Paulo, Los Angeles, San Francisco, Atlanta, Paris and Munich, today announced the completion of the acquisition of $248 million (R$1.37 billion) in real estate assets by its GTIS Brazil Logistics Real Estate Investment Fund. Strategically located in the metropolitan area of São Paulo, the assets are logistics warehouses and include Centro Logístico Embu (66,521 square meters), Distribution Center Barueri (90,484 square meters), Distribution Center Cajamar (102,650 square meters), and Distribution Center Rodoanel (77,587 square meters).
The acquisition was structured through the creation of a local real estate investment trust (known in Brazil as “FII”), which will be externally managed by an affiliate of GTIS Partners and is similar in many respects to a US REIT. The acquisition involved an equity investment through the issuance of the FII’s shares, accompanied by the issuance of real estate receivables certificates (CRIs) backed by the purchase and sale agreements related to the acquisitions. The FII issuance was made in the amount of $130 million(R$ 717,300,000), while the CRIs were issued in the total amount of $118 million (R$ 655,500,000) resulting in a transaction value with an aggregate value of $248 million (R$ 1,372,800,000.00) The creation of the FII marks GTIS’s first effort to access local public Brazilian equity markets.
According to a survey by Ebit|Nielsen, the e-commerce segment registered an increase of 47% in 2020, which has contributed to the increasing demand for logistics warehouses located in the vicinity of large urban centers to facilitate the distribution of goods. The e-commerce segment now represents 71.5% of GTIS’ logistics $x portfolio by revenue.
“The Fund was structured to be GTIS’s primary income-oriented logistics investment platform going forward in Brazil. To achieve this goal, it has unique governance mechanisms and economic rights for the listed real estate fund market,”, said Maristella Val Diniz, Senior Managing Director and Head of Brazilian Investor Relations at GTIS Partners. As provided for in its bylaws, the Fund has a majority independent Board of Directors, which will be responsible for investment decisions and for monitoring the Fund’s activities and performance. In addition, GTIS granted the Fund the right to participate in certain other opportunities for the acquisition of real estate assets in the logistics segment identified and captured by GTIS.
“We are incredibly excited to launch our first local Brazilian listed vehicle and look forward to continuing to grow our presence in the local Brazilian public markets,” said Josh Pristaw, Head of Capital Markets for GTIS and Co-Head of GTIS Brazil.
The distribution of the Fund’s shares was carried out through a restricted public offering and its shares trade on the B3 stock exchange, exclusively, among qualified investors, after the expiration of the lock-up period. In the future, the Fund’s shares may be admitted to trading for the general public upon presentation of a prospectus, according to article 15, paragraph 2, of the same Instruction.