The Standard Life Investments Select Property Fund has sold its two remaining assets in São Paulo, Brazil, over fears of muted rental growth.
Andrew Jackson, the fund’s manager, says the sale of the final two assets, at a combined value of 181 million reais (€70.2 million), was primarily made based on research into the market.
“We expect the increasing supply of office space in São Paulo to lead to negative or at least muted rental growth in the medium term,” he says.
Madison Building, an office building within the Vila Olimpia district of São Paulo, was purchased in March 2010 for 52 million reais and sold for 96 million.
Bela Paulista Building, another office address, was purchased in July 2010 for 54 million reais and sold for 85 million reais.
“Both properties are located in prime areas of the city and have been sold to a domestic fund manager,” Jackson adds.
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