The MRV (MRVE3) is rising in trading on Thursday (30), up around 2.64%, at R$12.05, as of 4:30 p.m. The company is boosted after the announcement that Canada’s Brookfield Asset Management will invest R$1.26 billion in Luggo, start construction company dedicated solely to the rental of property.

In return, BAM will own approximately 5,100 residential units. Luggo, after the sales, will however continue to manage the units.

The sales process will be divided into three phases, which will progress according to the maturity of the developments, which take into account the availability of building permits and the definition of rental prices.

The first phase has 1,842 units, all with permits already issued and target rental values ​​yet to be defined, and is expected to move around BRL 453 million.

Yesterday the first sale of the first phase was concluded, for 105 million reais, involving companies from Luggo Cabral and Luggo Piqueri, located respectively in Contagem (MG) and in the capital of São Paulo.

“We emphasize that Luggo Cabral has already reached 45% rentals in just 60 days, which reaffirms the affirmation of the project and of Luggo’s business model. The Luggo Piqueri development will begin leasing its units in January 2022,” comments MRV in its Material Fact.

The second phase is expected to move 630 million reais, involving 2,550 units. The developments, however, still lack planning permission, which must be obtained by December 2022, despite a capitalization rate already up.

Finally, the third phase includes land for Luggo developments, with building permits to be obtained only after 2022. This phase is expected to move around R$175 million, involving 710 units.

According to MRV, the agreement with the Canadian fund “is an important strategic partnership between the parties”, and creates a “solid avenue for diversification of funding for the sale of products.

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