Grupo Bresco targets institutional investors to expand real estate funds

Grupo Bresco is targeting domestic institutional investors, such as pension funds and insurance companies, to drive the next stage of growth for the Brazilian real estate investment fund (FII) market. Rafael Fonseca, CIO and Investor Relations Director at Bresco, suggests that as interest rates stabilize, these institutions may diversify their portfolios away from inflation-indexed government bonds toward real estate assets.

Fonseca noted that while foreign investment in Brazil exists, it is largely passive through global indices. He emphasized that structural industry growth requires discretionary capital from investors with the freedom to choose specific allocations.

On the operational side, Bresco reports significant growth in its logistics assets. Rental values have increased by 20% to 50% compared to two or three years ago, including a case where a property leased to Mercado Livre commanded a 25% higher price than the previous tenant. The logistics fund BRCO11 maintains 70% of its portfolio in last-mile properties, with further expansion potential in regions such as Campinas, Resende, Londrina, Bahia, Alagoas, and Viracopos.