GARE11 FII Acquires R$119.8M Carrefour Warehouse, Focuses on Logistics Portfolio Rebalance

The Fundo de Investimento Imobiliário Guardian Real Estate (GARE11) has concluded the R$119.81 million acquisition of a strategic logistics warehouse in Itapevi, São Paulo, a move the fund manager cited as having the potential for a high weighted average return over the next five years, though this is not guaranteed. The acquisition, detailed in a fato relevante released this week, is a core-asset play: the facility is 100% leased to Grupo Carrefour, serving as a critical supply center for the retailer’s network across the state of São Paulo. The anticipated yield is expected to surpass the fund’s current dividend guidance of R$0.083 per quota.

The new asset strengthens the Brazilian real estate fund's logistics exposure as part of an ongoing portfolio rebalancing strategy. The investment’s mechanism for potentially boosting the fund’s income is based on the long-term, mission-critical nature of the asset. Because the warehouse acts as a crucial hub for Carrefour's supply chain, the manager cited a high probability of renewal for the existing lease, which is set to expire in December 2029. This stability of income, underpinned by a high-credit tenant like Carrefour, provides the foundation for the higher projected income stream, a significant factor for investors following the GARE11 quota on the B3.

The transaction’s financing structure limits the immediate impact on GARE11’s capital position. The total R$119.81 million price was divided into two payments, with the initial R$101.7 million already provisioned in the fund’s cash balance since January 2024, a date intended to reflect a historical provisioning timeline prior to the transaction. This provisioning ensured the immediate payment was made without a significant new debt issuance or capital raise, leaving a marginal R$18 million balance due in July 2028, which will be corrected for inflation via the IPCA index. On the B3, the GARE11 FII quota was recently trading near R$8.14, with the broader Ibovespa index, Brazil’s stock market benchmark, moving around 177,894.97, reflecting the general stability despite a slight dip of 0.06%.

For investors focused on recurring income, this acquisition serves as a clear signal of the manager’s commitment to improving the fund's cash yield. The next key data point to watch is the subsequent progress on the portfolio rebalancing, specifically the expected sale of the fund's non-logistics urban properties, which will determine the final, longer-term exposure to the Carrefour Group and solidify GARE11's strategic focus on the resilient Brazilian logistics sector.