WTorre and BTG create company with US$ 3.1 billion in assets
Valor Econômico
After trying to raise funds in the market and facing a very delicate financial situation in 2010, businessman Walter Torre managed to achieve what is being considered by the market the best possible solution for his business. A real turnaround in the best of clichés. The getting together between Walter Torre and André Esteves, of BTG Pactual, was decisive. The businessman needed capital and banker, properties. Together, they created the largest properties company of Brazil, with R$ 5.3 billion (US$ 3.1 billion) in assets.
Both sides gain with the deal. BTG Pactual comes out as the majority shareholder, with nearly 65% of the company - which will have a new name, still to be defined - and important assets, many of which are icons of São Paulo and Rio. Walter Torre, on his turn, besides being a partner in the new business - will have nearly 30%, together with Santander, Votorantim and executives of WTorre, which are minority shareholders with the other 5% -, comes out as owner of another company, a split of the main company, with R$ 1.3 billion (US$ 764.7 million) in assets, between land and 50% of the future Iguatemi shopping mall. And what is most important: totally debt-free and with initial cash of R$ 380 million (US$ 223.5 million).
The dating between BTG Pactual and WTorre Properties started more than six months ago. The first deal made was the acquisition of the two main buildings of the WTorre under construction in São Paulo, in the JK Complex, and partnership on the land where it will be built the largest commercial building of São Paulo, with 96 thousand square meters. The conversation has quickly evolved into what would be a new logistics company, with assets of R$ 400 million (US$ 235.3 million), between land and investment. The design has changed and the final model is much greater than thought was at first.
In the new company are gathered the portfolio of commercial properties BTG acquired last year and the best assets of WTorre Properties. They are just ready undertakings, in operation, or in the process of completion. Properties that may, in the future, be sold for the recycling of the portfolio. In the scenario, the real estate funds registered of BTG Pactual arise as alternatives for those properties. The company may also receive investments from new members, among them foreign investors that may use a fund structure put up abroad to invest.
BTG entered with 50% of Ventura, in Rio; 40% of the former undertaking of Brookfield at Faria Lima (last building available for lease in the region, whose constructive potential is exhausted); the two towers of the JK Complex; the land at Marginal Pinheiros where it will be erected the largest commercial building of São Paulo; and a project in Porto Maravilha, under development in the port of Rio. WTorre Properties participates with the building that will host the new headquarters of Petrobras in Rio; 50% of a commercial building in Marginal Pinheiros near Largo da Batata; besides buildings made to order and rented to companies like Unilever and Vivo.
In the company that stays with Walter Torre are nearly 30% of the assets of WTorre, which amount to R$ 1.3 billion (US$ 764.7 million). They are lots for logistics development in São Paulo, Rio de Janeiro and Campinas (SP) with building potential of 800 square meters and 50% interest in Shopping Iguatemi. There is a non-competition clause between both the companies and the new WTorre Properties has preference right in the acquisition of real estate.