Exercise of the right of preference begins today (1); manager explains changes in the FII


See details about GALG11 after the quota offering.

GALG11: Exercise of the right of preference begins today (1); manager explains changes in the FII
Gustavo Silva
  • 01/11/2023 at 1:30 pm
  • 3 minutes reading

Updated on: 11/01/2023 at 1:15 pm

(Promotional material)

The period for exercising the right of preference of the real estate fund GALG11. At B3, this period for exercising the subscription right runs until November 9th. Furthermore, today also marks the day for negotiating the preemptive right at B3.

The FII managed by Guardian Gestora intends to raise a total of R$500 million. The value of the new quota will be R$9.17, already including the distribution fee of R$0.03 cents. The fund also intends to expand its investment activities in urban income properties. It is also planned to call an Assembly, after the offer, to

A 5th issue of GALG11 shares There will also be a subscription period for the remainder and additional amount, between the 14th and 16th of November, also by B3. The offer is aimed at investors in general.

Changes in GALG11 after quota offering

According to the offer materials made available (link), the fund intends to acquire new properties in the urban income, with stores belonging to the retailers Grupo Mateus and GPA. The manager’s objective is to increase the diversification of both the type of assets and the fund’s tenants, maintaining the strategic pillars of the current fund.

The manager explains that the properties for acquisition indicated in this 5th issue of GALG11 have the same strategic characteristics as the current portfolio: atypical contracts with full termination fines, long-term leases, tenants with excellent credit ratings and stability in dividends.

As a complement, GALG11 wants to increase its income distribution with its new offer. In the feasibility study, the fund projects a dividend yield annual rate of 11.6%, rising from the current level of 10.8%. Check the table below published in the offering prospectus:

Source: GALG11 offering prospectus

The FII will expand its operations in the real estate market, combining its experience in managing logistics assets with the acquisition of properties aimed at retail.

For these reasons, after the offer, the shareholders will decide in a meeting, among several agendas, to change the name of the fund to Guardian Real Estate Real Estate Investment Fund (GARE11).

Upon issuance, the feasibility study projects a reduction of more than 30% of the fund’s current leverage level, reaching 26%.

This material is for informational purposes only and is not a recommendation for the purchase of any securities. It is recommended to read the prospectus and regulations before investing, especially the risk factors section. The income tax exemption is only applicable to individuals and is subject to legal conditions. Investment funds are not guaranteed by the fund administrator, the portfolio manager, any insurance mechanism or the Credit Guarantee Fund (FGC). The profitability obtained in the past does not represent a guarantee of future results.

The article is in Portuguese

Tags: Exercise preference begins today manager explains FII



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