SDI seeks $450m for second fund

The Brazilian fund manager has launched a follow-up to its opportunistic development vehicle. The firm hopes to raise $450 million for commercial and industrial project.

Brazilian real estate developer and fund manager SDI has launched its second opportunistic development fund. The institutional fund, Tellus II, is seeking $450 million in commitments for commercial and industrial projects in Brazil.

According to Andre Abreu Pereira, director at the São Paulo-based firm, the fund is “mirroring the structure of Tellus I.” He noted that Tellus II will be a non-discretionary fund that is expected to have its first close by July and a final closing in December of this year. SDI is not using a placement agent.

Tellus II is open to pension funds, endowments, hedge funds and other institutional investors looking for long-term real estate investment in Brazil. About 30 percent of the investors in the Tellus I fund have expressed interest in investing in the second fund, Pereira said. SDI is targeting IRRs above 30 percent and is seeking a minimum commitment of $50 million.

SDI was formed in 2005 out of the management team of Serplan, one of the leading players in real estate developments in many areas of Sao Paulo and other Brazilian cities. Its first fund, Tellus I, was launched in 2008 and targeted $100 million. According to one source familiar with the situation, that fund closed at $140 million.