For more information, please access the following link: Pátria Real Estate.
Founded in 2001, Pátria’s Real Estate division developed the Brazilian commercial real-estate market in offering its clients customized real-estate solutions.
The firm’s primary investment strategies involve outsourcing client properties, allowing them to capitalize their assets through Sale and Leaseback (SLB) structures or to optimize their capital structure during expansions through Built-to-Suit (BTS) transactions, with the objective of supporting their core business and maximizing value for shareholders.
We carefully structure customized real estate transactions to advance our clients’ strategic objectives, resulting in significant benefits:
- Freeing up capital – to fund strategic activities (i.e. mergers and acquisitions) or to reallocate it to the company’s core operations. This process also can lead to debt reduction through better cash flow and strengthen working capital.
- Funding in local currency – matching revenue streams (in local currency) with rent expenses (natural hedge). This can reduce hedging costs and dependency on parent-company financing.
- Reducing the client’s asset base – this may also entail swapping Fixed Assets for Current Assets.
- Improving the balance sheet – by trading fixed assets often carried below market value for cash, thereby maximizing liquidity.
- Realizing gains – by taking advantage of the appreciation on property acquired in prior periods.
- Minimizing tax liabilities – we work to optimize tax impacts from transactions by using a negative tax base, if it exists, to absorb capital gains from selling the property. Taxable earnings may also be reduced by offsetting property depreciation through higher lease expenses. Potential tax credit of PIS / COFINS.
- Transferring property risks – by selling property to third parties while the client maintains operational control.