Google will vacate FII leased property in SP; See effect below

Google Brazil has expressed its interest in terminating the lease of four commercial complexes in the Sky Corporate Building located in the Vila Olímpia neighborhood in São Paulo (SP). The decision was confirmed in a relevant fact issued by FII Pátria Edifícios Corporativos (PATC11), the owner of the property.

According to the document, the tenant will adhere to the minimum six-month notice period stipulated in the lease for the spaces, which have a gross leasable area (GLA) of 2,690 square metres.

The text read: “The complexes will not be evacuated until April 1, 2025.” “Therefore, until that date, no financial impact on the Fund is expected, as the rent must be paid throughout the notice period,” adds the relevant fact.

According to the management team, the monthly rent paid by Google Brazil represents the equivalent of approximately R$0.08 per share. The value represents approximately 50% of the income of R$0.15 per share that the fund will distribute in October.

On the other hand, the managers remember that the fund is “entitled to a termination penalty calculated proportionately to the remaining term of the contract”, which will lead to an increase in portfolio revenue of approximately R$ 0.12 per share.

The PATC11 contract with Google was signed in September 2022, and at the time, the duration of the contract was not detailed. Today, the company represents 37% of the fund’s revenues, according to the latest management report for the portfolio.

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The PATC11 portfolio consists of stocks in four properties. The fund has an 11% stake in Sky Corporate, exactly the space occupied by Google.