RECT11 real estate fund keeps São Paulo asset and forecasts 11.4% vacancy rate
A Brazilian real estate fund has canceled a sale in São Paulo after a buyer failed to meet contract terms, retaining the property for another renter and projecting its portfolio vacancy rate to reach 11.40%.
The RECT11 (REC Renda Imobiliária) reported that the purchase agreement for a property on Avenida Europa in São Paulo was terminated because the buyer did not fulfill an obligation under the contract signed on December 26, 2025. The three-story building at number 884 features 34 parking spaces and covers a licensed area of 1,962.60 square meters. Rather than selling the asset, the fund noted it will remain in its portfolio while continuing to lease it to the current occupant, who is also the buyer under the failed deal. The fund stated this decision comes alongside other ongoing adjustments regarding vacant spaces. Consequently, the vacancy rate for the RECT11 portfolio is expected to rise to 11.40%. Management emphasized that the loss of this sale would not negatively impact income distributions to shareholders. Despite maintaining the property, the management team indicated it remains committed to selling other underperforming assets in its portfolio.
