The Resumption of Credit Suisse’s Real Estate Fund Sale in Brazil

The Swiss bank UBS is set to resume the sale of Credit Suisse Hedging-Griffo (CSHG), a real estate fund manager controlled by Credit Suisse in Brazil, according to sources interviewed by the Brazil Journal.

After the merger of the two banks in March of this year, UBS aims to simplify its operations in Brazil, and the sale of CSHG is part of this strategy.

The CSHG Real Estate Funds

Credit Suisse’s Real Estate Asset in Brazil has been operating since 2003 and currently manages eight real estate funds:

1. CSHG Real Estate – HGRE11
2. CSHG Logistics – HGLG11
3. Real Estate Accounts Receivable CSHG – HGCR11
4. CSHG Urban Rent – HGRU11
5. CSHG Real Estate FoF – HGFF11
6. CSHG Headquarters – HGPO11
7. Castello Branco office park – CBOP11
8. Residential CSHG – HGRS1

These CSHG funds have a combined shareholder equity of over R$ 10 billion. For example, HGLG11, the largest logistics fund in terms of the number of shareholders – 365 thousand – amounts to R$ 3.6 billion.

The portfolio has recently raised over R$ 1.5 billion in new share issues, making it the largest share issuance of the year based on data from the Securities and Exchange Commission (CVM).

The Sale Process and Potential Buyers

According to the Brazil Journal, UBS BB will lead the sale process of CSHG. The Swiss bank is already in talks with possible interested parties.

The decision to resume the sale of CSHG comes amidst the confidence crisis in Credit Suisse. However, in October 2022, CSHG issued a statement explaining that it complies with Law 8668/93, which ensures the segregation and independence of real estate fund assets and rights from any institution.

Article 7 of Law 8668/93 highlights that the assets and rights of the Real Estate Investment Fund, including the properties held by the managing entity, are not communicated with the assets of the institution.

Unique Insights and Perspectives

While the resumption of the CSHG sale represents a strategic move for UBS to streamline its Brazilian operation, it also signifies the resilience and attractiveness of the Brazilian real estate market.

Investing in real estate funds in Brazil offers investors several advantages:

• Diversification: Real estate funds provide access to a diversified portfolio of properties, reducing investment risk.
• Stability: Real estate is a stable investment alternative, delivering consistent returns over the long term.
• Income Generation: Many real estate funds distribute regular income in the form of dividends.
• Professional Management: Real estate funds are managed by experienced professionals who understand the local market and can make informed investment decisions.

Furthermore, the Brazilian real estate market has shown resilience even during challenging economic times. This is evidenced by the substantial growth of CSHG funds and their ability to attract a large number of shareholders.

It is important for potential investors to consider their investment goals, risk tolerance, and the specific attributes of each real estate fund before making investment decisions. Thorough research and seeking advice from financial professionals are essential steps.

Conclusion

The resumption of the sale of Credit Suisse Hedging-Griffo (CSHG) by UBS in Brazil is a significant development in the Brazilian real estate market. The sale process, led by UBS BB, highlights the attractiveness of real estate funds and their potential for generating consistent returns for investors.

With the CSHG funds currently managing over R$ 10 billion in shareholder equity and witnessing significant share issuance, it is clear that the Brazilian real estate market continues to thrive.

Investors considering real estate funds in Brazil should carefully evaluate the individual funds and consult with financial professionals to make informed investment decisions.

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Summary:

UBS is set to resume the sale of Credit Suisse Hedging-Griffo (CSHG), a real estate fund manager controlled by Credit Suisse in Brazil. The sale is part of UBS’s strategy to simplify its Brazilian operation after the merger of the two banks. CSHG manages eight real estate funds with a combined shareholder equity of over R$ 10 billion. The resumption of the sale process comes amidst a confidence crisis in Credit Suisse. UBS BB will lead the sale process and is in talks with potential buyers. The Brazilian real estate market offers attractive investment opportunities, providing diversification, stability, income generation, and professional management. Investors should conduct thorough research and seek advice before making investment decisions.

The Swiss bank UBS would have resumed the sale of Credit Suisse Hedging-Griffo (CSHG) – a real estate fund manager controlled by Credit Suisse in Brazil -, according to sources interviewed by the Brazil Journal.

According to information from the vehicle, the financial entity aims to simplify the Brazilian operation after the merger of the two banks -occurred in March of this year-.

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Credit Suisse’s Real Estate Asset in Brazil began operations in 2003 and is currently responsible for eight real estate funds. Are they:

CSHG Real Estate – HGRE11

CSHG Logistics – HGLG11

Real Estate Accounts Receivable CSHG – HGCR11

CSHG Urban Rent – HGRU11

CSHG Real Estate FoF – HGFF11

CSHG Headquarters – HGPO11

Castello Branco office park – CBOP11

Residential CSHG – HGRS1

Together, the CSHG FIIs add up to more than R$ 10 billion in shareholder equity. the doing HGLG11for example, the largest logistics fund in number of shareholders – 365 thousand – amounts to R$ 3.6 billion.

The portfolio has also just raised more than R$ 1.5 billion in new share issues, the largest of the year, according to data from the Securities and Exchange Commission (CVM).

Still according to information from the Brazil Journal, the CSHG sale process should be led by UBS BB, which is already in talks with possible interested parties, says the portal.

In October 2022, in the midst of the crisis of confidence in Credit Suisse, CSHG issued a statement explaining that it complied with Law 8668/93, which establishes that the assets and rights of real estate funds are segregated and independent from any institution.

“The assets and rights that are part of the assets of the Real Estate Investment Fund, particularly the properties in trust by the managing entity, as well as their fruits and income, are not communicated with their assets,” says article 7 of the Law. 8668/ 93, highlighted by the administrator.

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