Real estate funds break the record in Brazil, grow 25% in 2019, and raise R$ 32.5 billion until November of this year

The year 2019 represented a milestone for the real estate funds market in Brazil. The volume of new issues, the largest in history according to Anbima (Brazilian Association of Financial and Capital Markets Entities), reached R$ 32.5 billion until November, more than double the previous record of R$ 16.1. billion, launched in 2011, or of R$ 16.1 billion by 2018. According to the Valor Investe website, the Brazilian Securities Commission (CVM) still has R$ 2.9 billion, in 12 offers, under analysis.

According to the Valor Investe website, to date, IFIX, the index of real estate funds traded on the Brazilian stock exchange, has appreciated 25%. There are more than 200 FIIs traded on B3, although the Brazilian Securities and Exchange Commission (CVM) has registered about 478 funds that together add up to R$ 121 billion in equity, according to a bulletin released by B3 in November.

Caixa will sell R$ 7.2 billion in Petrobras shares

Caixa, a state-owned Brazilian bank, will sell 241.3 million shares of Petrobras, equivalent to 1.85% of the company's capital. The transaction will involve only common shares, which give voting rights to the shareholders in the meeting  (Caixa holds a 3.2% share of these shares). Of the total moved, R$ 7 billion will be with the bank. The gain estimate was made based on the share price on June 7, when the papers were traded at R$ 29.75. The offer will involve distribution in Brazil and abroad in the form of American Depositary Receipts (ADRs).

It is positive for Caixa Econômica to sell the shares. The main business of this state-owned bank is not to buy shares but to finance the construction and purchase of own houses for Brazilians. The decision also satisfies the new government, which intends to privatize parts of Petrobras after the STF's positive decision in that regard.

However, due to the adjusted balance sheets, where the currency hedge account only increases, one day this will have consequences. The Securities and Exchange Commission of Brazil (CVM), the securities market authority in Brazil, has not yet explained what will be the deadlines for companies with Petrobras to settle such an account. The minority shareholders still do not know the position of Petrobras in this regard.