Brazil self-storage operators GuardeAqui and Kipit have formed a joint venture with plans to develop 50 facilities, 30 by 2020. The investment could reach 600 million reais. Though the resulting assets will operate under the GuardeAqui brand name, ownership will be split equally, according to Fauze Antun, a real estate partner with Kipit controlling company Pátria Investimentos Ltda. Once the joint venture reaches 50 locations, a plan will be made for GuardeAqui to exit through an initial public offering, sale to another investor or another option, Antun told the source.
Though the Brazil self-storage market is growing, it remains underdeveloped due to the scarcity of available financing, Allan Paiotti, CEO for GuardeAqui, told the source. Commercial tenants comprise half the business of both operators, Paiotti said.
Kipit has two self-storage facilities in São Paulo.
Pátria Investimentos is an alternative-investment manager specializing in Latin American assets, particularly in Brazil. Its private-equity investments include creating new businesses in agribusiness, credit, infrastructure, real estate, self-storage and other sectors, according to its website.
Based in São Paulo, GuardeAqui operates 14 self-storage facilities. Controlled by Chicago-based investment-management company Equity International, the company announced three years ago its intention to have 50 locations by 2017.
Equity International is an institutional real estate investment company led by Tom Heneghan and Sam Zell. Founded in 1999, it looks for high-growth opportunities with companies in emerging markets outside the United States. It has raised more than $2 billion and invested in 26 portfolio companies in 15 countries.