Standard Life Investments has purchased two offices in Brazil on behalf of its Select Property Fund. The deals represent some of the first investments by the fund in the country.
Standard Life said in an announcement it had purchased the Bela Paulista Building and the Madison Building, both in Sao Paulo, for a combined BRL110 million (€47.6 million; $62 million).
The deals for the two buildings, which are let to both international and Brazilian tenants, reflected revisionary net income yields of 12.1 percent and 11.2 percent respectively.
The Select Property Fund is a value-added vehicle open to both institutional and retail investors which invests on a global basis.
It made its first direct investment in Brazil in October 2009 when it bought the Alana II Building, another office building in Sao Paulo, for BRL15 million.
Andrew Jackson, manager of the Select Property Fund at Standard Life Investments, said the firm was particularly focused on generating strong returns over the medium term from both the Americas and Asia Pacific. “We are particularly positive about the prospects for the Brazilian economy and its associated commercial real estate market.” He said.
Standard Life Investments manages £8.5 billion (€10.23; $13.51 billion) of real estate assets across 18 investment vehicles including pooled pension products, segregated accounts, mutual funds and sector focused funds.