November 27, 2019 / 12:01 PM / 8 months ago

Brazil's Cyrela Commercial Properties buys Sao Paulo towers for $250 mln

RIO DE JANEIRO, Nov 27 (Reuters) - Brazil's Cyrela Commercial Properties SA (CCP) has agreed to buy two high-end office towers in Sao Paulo for 1.05 billion reais ($250 million), the real estate firm said, the latest signal of a rebound in Latin America's largest office market.

In a late Tuesday securities filing, the company said it would purchase most of two towers in the Condominium WTorre JK complex, from Fundo de Investimento Imobiliario JK D and Fundo de Investimento Imobiliario JK E. Both are FIIs, which are effectively Brazil's version of real estate investment trusts, or REITs.

In recent months, several real estate firms have been hunting acquisitions in Sao Paulo, particularly in upscale business neighborhoods in the city's southwest, as vacancy rates fall following a prolonged recession. In October, CPP competitor BR Properties SA purchased a nearby mixed-use development and an office tower in deals worth about $250 million total.

CPP currently has a $400 million joint venture with the Canada Pension Plan Investment Board to invest in Brazilian offices.

In late October, CPP raised $190 million in a share offering.

($1 = 4.20 reais)

Reporting by Gram Slattery, editing by Louise Heavens

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