GRAND CAYMAN, Cayman Islands, June 09, 2022 (GLOBE NEWSWIRE) — Patria Investments (“Patria”) (NASDAQ: PAX), a worldwide different asset supervisor, introduced right now an settlement to purchase VBI Real Estate (“VBI”), one of many high impartial different actual property asset managers in Brazil, with roughly R$ 5 billion in property beneath administration throughout each growth and core actual property automobiles. The transaction is structured in two phases, the primary of which entails the acquisition of fifty% of VBI by Patria. The second stage, when closed, will lead to full possession and integration of VBI to Patria’s platform.
“We are very excited to join forces with VBI as the key anchor for our real estate strategy in Brazil looking forward,” stated Alex Saigh, Patria’s CEO. “Over the last 15 years, VBI’s team built a stellar track record and established the firm as a top player in the Brazilian market. This transaction aligns Patria with highly specialized investment talent and represents an important step in building valuable permanent capital AUM.”
The Brazilian market consists of greater than R$ 220 billion in listed actual property funds, and has grown at an annualized price of 28% during the last 5 years. The asset class is a pretty entry level into options for native excessive web value and retail traders, because it gives each liquidity via public markets and important tax advantages to particular person traders.
VBI was established in 2006, and presently manages roughly R$ 5 billion (or greater than US$ 1 billion) in property beneath administration, together with R$ 3.7 billion in everlasting capital REIT buildings and the rest in drawdown-style growth funds. Annualized AUM development of 38% from 2018 via 2021 has positioned VBI as a high impartial REIT supervisor in Brazil with sturdy presence and efficiency within the nation’s three most related sub-sectors – logistics, workplace and credit score. VBI is led by 5 senior companions that convey a mean of 20 years of trade expertise and an impressive fame among the many area’s key shoppers.
“VBI and Patria are a strong fit,” stated Ken Wainer, co-founding companion of VBI. “We’re delighted to become part of the leading alternative investment platform in Latin America. Together we can expand our offering of best-in-class real estate investment solutions for local and global institutional investors.”
“We are thrilled to join with Patria in pursuit of our mutual goals in the Brazilian market”, stated Rodrigo Abbud, co-founding companion of VBI. “The financial deepening in Latin America presents a great opportunity for the best asset managers to attract new capital, and this partnership aligns our specialized real estate expertise with Patria’s long standing reputation in the alternatives space.”
Transaction Details While particular monetary phrases should not being disclosed, the transaction can be structured in two phases. The first stage is predicted to shut inside 60 days, and entails the acquisition of fifty% of VBI for money consideration, plus the addition of Patria’s two present Brazilian REIT automobiles. During stage one, Patria’s actual property workforce will be part of forces with VBI, and VBI will successfully handle Patria’s actual property platform in Brazil. Cash funds for stage one are scheduled in two installments to be paid in 2022 and 2023, plus one further cost conditioned on VBI’s Fee Earning AUM development to be paid between 2024 and 2027. When closed, the second stage will lead to full possession and integration of VBI’s platform by Patria, and that’s anticipated to begin inside 24-36 months. Stage two cost can be divided in two annual installments to be paid in a mix of money and PAX Class A shares, with the fairness portion being capped at 50% of the whole worth of the stage two cost.
Conference Call & Webcast Information Patria will host a convention name on Friday, June 10, 2022 at 8:30 am (Eastern Time) to talk about the transaction. The convention name might be accessed by way of webcast on the Events part of Patria’s IR web site at https://ir.patria.com. A presentation on the transaction can be posted to Patria’s IR web site and on the SEC web site at https://www.sec.gov/ upfront of the convention name.
About Patria Investments Patria is a number one different funding agency centered on Latin America, with over 30 years of historical past and mixed property beneath administration of $27.6 billion, and a worldwide presence with workplaces in 9 cities throughout 4 continents. Patria goals to present constant returns in enticing long-term funding alternatives that enable for portfolio diversification via its Private Equity, Infrastructure, Credit, Public Equities and Real Estate merchandise. Through its investments Patria seeks to rework industries and untangle bottlenecks, producing enticing returns for its traders, whereas creating sustainable worth for society. Further info is out there at www.patria.com
About VBI VBI Real Estate is a number one Brazilian actual property different funding supervisor. VBI’s actual property funding merchandise embody core and opportunistic funding automobiles centered on the logistics, workplace, structured credit score, retail, residential and pupil housing segments. Founded in 2006, VBI’s investor base consists of Brazilian and worldwide institutional and particular person traders. VBI seeks to present enticing risk-adjusted returns to traders whereas producing a optimistic influence on the city atmosphere. Further info is out there at www.vbirealestate.com
Disclaimer: This press launch is for informational functions solely and doesn’t represent a suggestion to promote, a solicitation of a suggestion to purchase, or a advice to buy any securities of Patria Investments Limited. The info contained herein doesn’t purport to be all-inclusive. The knowledge contained herein is derived from numerous inside and exterior sources. Any estimates or projections included shouldn’t be relied upon as being essentially indicative of future outcomes.
Forward Looking Statements: This press launch could include forward-looking statements inside the that means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can determine these forward-looking statements by means of phrases equivalent to “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “would,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the adverse model of those phrases or different comparable phrases. Such forward-looking statements are topic to numerous dangers and uncertainties. Accordingly, there are or can be vital elements that would trigger precise outcomes or outcomes to differ materially from these indicated in these statements. We imagine these elements embody however should not restricted to these described beneath the part entitled “Risk Factors” in our annual report on Form 20-F for the yr ended December 31, 2021, as such elements could also be up to date from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), that are accessible on the SEC’s web site at www.sec.gov. These elements shouldn’t be construed as exhaustive and ought to be learn along with the opposite cautionary statements which are included in our periodic filings. We warning you not to place undue reliance on any forward-looking statements, which communicate solely as of the date of this investor presentation. We undertake no obligation to publicly replace or evaluate any forward-looking assertion, whether or not on account of new info, future developments or in any other case, and if we do replace a number of forward-looking statements, no inference ought to be drawn that we’ll make further updates with respect to these or different forward-looking statements. There might be no assurance that the proposed transactions described on this presentation, that are topic to sure closing situations, can be accomplished, nor can there be any assurance, if the transactions are accomplished, that any potential advantages of the transactions can be realized. The description of the transactions contained herein is barely a abstract and doesn’t purport to be full.
Press service: Brazil – Ideal H+Ok Strategies ( [email protected] ) Rodrigo Fonseca: +55 11 9.4846-5003 / [email protected]
Patria Shareholder Relations: Josh Wood: +1 917 769 1611 / [email protected]