August 17, 2018 / 4:49 PM / a year ago

GTIS Partners puts Brazil real estate on the block - sources

SAO PAULO, Aug 17 (Reuters) - U.S. private equity firm GTIS Partners LP has put four major properties in Sao Paulo up for sale, four people with knowledge of the matter said, in what could be one of Brazil’s largest real estate transactions in recent years.

GTIS, which has about $5 billion of real estate assets under management, has placed its Infinity and Vista Faria Lima towers on the block, said the sources, who requested anonymity as the matter is private. GTIS has also put two large warehouses outside the city on the market, they added.

The auction, which could bring close to $400 million for the office towers alone, is the latest sign of a revival in Brazil’s commercial property market as vacancy rates fall following a multi-year rout. Warehouses are also an increasingly hot commodity in Brazil as e-commerce takes off in Latin America’s largest economy.

The Infinity tower in particular boasts big-name tenants, including the Brazilian units of Goldman Sachs Group Inc and Credit Suisse AG, as well as Facebook Inc, Apple Inc and Thomson Reuters Corp competitor Bloomberg LP.

GTIS declined to comment on the sale, but said the firm continues to be an active buyer in Brazilian real estate.

The firm would like to sell the assets as a package, two of the sources said, but may sell them in pieces depending on buyers’ interest.

While the process is in its early stages, private equity funds, sovereign wealth funds and publicly traded firms such as BR Properties SA and Cyrela Commercial Properties SA (CCP) are seen as potential buyers, the sources said.

Market sources said the buildings would likely fetch at least 25,000 reais per square meter, which would put their price above 1.3 billion reais ($330 million). The price of the warehouses was unclear.

The GTIS sale is considered one of two major corporate real estate deals in Brazil at the moment. The other is the sale of towers owned by South Korea’s Mirae in a process that could fetch 1 billion reais.

Among the parties with preliminary interest in that asset, Reuters reported in May, is CCP, which has a joint venture with the Canada Pension Plan Investment Board to invest $400 million in Brazilian offices.

($1 = 3.91 reais)

Reporting by Gram Slattery; Editing by Christian Plumb and Dan Grebler

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