Paladin Realty Partners has had a successful R$337 million ($67 million) first closing of Brazilian Fundo de Investimento Imobiliario (FII, a fund similar to a U.S. REIT), which will focus on the development of boutique office buildings in the prime supply-constrained submarkets of São Paulo.
In partnership with investment firm Hedge Investimentos and local developer Idea Zarvos, Paladin’s São Paulo–based team will be executing the development strategy, taking advantage of the recovery of São Paulo’s office market and trends that favor smaller office buildings in prime submarkets. The first four development sites are located in the submarkets of Itaim, Pinheiros, Paulista and Jardins, which have vacancy rates in the range of 5 percent to 10 percent, compared with 24 percent for the city’s overall class A market. Paladin and Idea Zarvos have been partners since 2014, developing for-sale residential projects as well as purpose-built rental apartment building in São
