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Credit Suisse Strikes Deal to Sell Brazilian Real Estate Fund Management Business to Patria

 |  December 7, 2023

Credit Suisse announced on Wednesday that it has reached an agreement to sell its real estate fund management business in Brazil to Patria Investments, a leading asset manager. The deal is valued at up to 650 million reais, approximately $130 million.

The Swiss bank, which is owned by UBS, will be transferring its Credit Suisse Hedging-Griffo Real Estate business to Patria Investments. This business segment includes listed real estate funds totaling around $2.4 billion in assets under management. However, the transaction is contingent upon receiving approvals from both antitrust authorities and the investors involved.

Patria Investments, in a separate statement, highlighted that the acquisition of Credit Suisse’s real estate fund management business will contribute significantly to its existing real estate portfolio. Currently managing assets worth 18 billion reais, equivalent to $3.67 billion, in the real estate sector, Patria aims to further strengthen its position in the market through this strategic acquisition.

The deal underscores Credit Suisse’s ongoing efforts to streamline its operations and focus on core business areas. By divesting its real estate fund management business in Brazil, the bank aims to optimize its resources and concentrate on key areas of growth and profitability.

Read more: UBS To Cut Half Of Credit Suisse Jobs Post Buyout

Patria Investments, with a robust presence in the Latin American market, sees this acquisition as a strategic expansion of its real estate management capabilities. The addition of Credit Suisse’s business is expected to enhance Patria’s standing in the industry, allowing it to offer a broader range of services to its clients.

Despite the positive outlook, the completion of the deal is subject to regulatory approvals and the consent of the investors involved. Both Credit Suisse and Patria expressed confidence in the success of the transaction, highlighting the complementary nature of their businesses and the potential for mutual benefits.

As the global financial landscape continues to evolve, strategic moves such as this acquisition underscore the adaptability and resilience of financial institutions seeking to align themselves with emerging opportunities and market demands. The finalization of the deal will likely pave the way for a new chapter in the real estate fund management sector in Brazil, with Patria Investments poised to play a key role in shaping its future.

Source: Reuters