Felsberg advises on creation of São Paulo state’s first REIT

Felsberg Advogados has advised securities brokerage company Socopa Corretora Paulista on the creation and regulation of São Paulo state’s first real estate investment trust (REIT), the Fundo de Investimentos Imobiliário do Estado de São Paulo (FII).

Socopa won a bid for the hiring of specialised technical services for the structuring, administration, custody and operation of such fund last January.

The company will be responsible for the administration of the fund for five years, a period which may be extended.

The fund’s portfolio value is evaluated at one billion reais ($255.4 million), comprising a portfolio of 264 properties out of a stock of more than 5,000 throughout the state of São Paulo. 



To accomplish the deal, the state government endorsed Socopa’s registry application of the REIT before Brazil’s securities commission, the Comissão de Valores Mobiliários (CVM).
 
The State of São Paulo is a pioneer in the creation of a mechanism to optimise and rationalise public resources available through the creation of investment funds and the sale of real estate, the São Paulo-based law firm said. 



State governor Márcio França signed the regulation of the REIT on December 10 in the presence of treasury secretary Luiz Cláudio Rodrigues de Carvalho and government secretary Saulo de Castro Abreu Filho.

Felsberg lawyers acting as counsel to Socopa were lead partner for capital markets and real estate Fernanda Amaral, and associate Tatiana Altemari.