PAX - Patria Investments Signs Agreement to Acquire Credit Suisse's Real Estate Business in Brazil | Benzinga
GRAND CAYMAN, Cayman Islands, Dec. 06, 2023 (GLOBE NEWSWIRE) -- Patria Investments Limited ("Patria") (NASDAQ:PAX), a global alternative asset manager and market leader in Latin America, announces the signing of an agreement for the acquisition of Credit Suisse's Real Estate business in Brazil ("CSHG Real Estate"), for total cash consideration of up to R$ 650 million (~US$ 130 million). The transaction is structured with R$ 300 million (~US$ 60 million) due upon completion of standard regulatory approvals, and up to an additional R$ 350 million (~ 70 million) incrementally conditioned to the successful shareholder approval process and transfer of underlying real estate funds. The funds are listed on the Brazilian stock exchange, and together would add up to R$ 12 billion (~US$ 2.4 billion) in assets under management to Patria's Real Estate platform.
The CSHG Real Estate platform is one of the most relevant players in the Brazilian REIT market, ranking top 5 in market share and investing across a diverse range of market strategies including Logistics, Retail, Office and Receivables. The funds represent permanent capital AUM with significant scale, with four funds each having a market capitalization over R$1.5 billion. The team of 25 professionals, who will join Patria following closing, have delivered AUM growth outpacing the IFIX market index by 900 basis points since 2017, and a portfolio that is currently delivering a weighted annualized dividend yield of more than 9%.
Patria has taken significant steps in recent years to scale its Real Estate platform in Latin America, now with a strong presence in Brazil, Colombia and Chile, and more than US$ 3 billion in real estate assets under management as of November 2023. Notably, Patria acquired 50% of VBI, one of the largest independent real estate asset managers in Brazil in mid-2022, and recently closed a new joint venture with Bancolombia to anchor its ...