Real estate investment funds continue to make noise in the market. On June 14, the “Rentas Inmobiliarias III” vehicle of the general fund administrator (AGF) of Sura in Chile, announced that it will propose to its contributors to carry out a capital increase, without providing details of the operation.
The fund will mature in December 2025, and in March of this year it showed 40.4% vacancy among its office assetsfigures dragged down by the 100% vacancy of the former Latam building in the Renca commune, as well as the 75% vacancy of the State 10 tower – which also belonged to the airline – located in Santiago.
Meanwhile, the total unemployment rate, including its commercial and industrial assets, stood at 22.4%.
In this context, The capital increase will be voted on in an extraordinary meeting of contributors on July 2, at which time the creation of a new series of fund quotas will also be proposed..
Although the amount that the AGF seeks to raise and the purposes for which it would be raised have not been informed, the manager will hold a webinar for this Wednesday, in which the senior vice president of Real Estate Investments of Sura Investments, Ruperto Lira, and the senior associate of Consulting and Investments of the firm, Rodrigo Balbontín.
“Our experts will talk about the management and results of the fund, in addition to the strategy for refinancing its financial commitments,” Sura said in a summons to its contributors.
Restricted debt
From the market they maintained that the operation would seek to strengthen the financial position of “Rentas Inmobiliarias III”.
Along these lines, sources indicated that it would follow the example of its predecessor fund, “Rentas Inmobiliarias II”, which approved in March a capital increase of UF 300,000 for the partial amortization and refinancing of the debt of the Las Artes Building in Nueva Las Condes. (they own 79% in portfolio).
In a webinar about the operation, they explained that the scenario presented interest rates at their highest levels in the last 10 to 15 years, with a restricted debt market and a reduced level of debt for real estate assets.
