MRV (MRVE3) is advancing in this Thursday’s (30) trading session, up around 2.64%, at R$12.05, as of 4:30 PM. The company is boosted after the announcement that Canadian Brookfield Asset Management will invest BRL 1.26 billion in Luggo, start of the construction company dedicated solely to the rental of real estate.

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

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

The first phase has 1,842 units, all with licenses already issued and a target rental value to be defined, and is expected to generate approximately R$453 million.

Yesterday the first sale of the first phase was finalized, for 105 million reais, involving projects of 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% rental in just 60 days, which reaffirms the affirmation of the project and the economic model of Luggo. The Luggo Piqueri project will start renting 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 projects, however, do not yet have building permits, which must be obtained by December 2022, despite a capitalization rate already up.

Finally, the third phase includes land for the Luggo projects, with building permits to be obtained only after 2022. This phase is expected to generate 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 to diversify funding for the sale of products.

Buying opportunity? XP Strategist reveals 6 cheap stocks to buy today. look here.

Related