Brazil Manager Builds Commercial RE Fund

Prosperitas, the Sao Paulo-based commercial real estate specialist, is heard close to unveiling its third private equity (PE) fund, Prosperitas Real Estate Partners III. Size will be capped at $750m, but the fund is heard to have seen over $2bn in demand, say people familiar with the process. The new vehicle, like its 2 predecessors, counts on several global institutional investors, including the Washington State Investment Board. Washington State has committed $50m tickets to the first and second Prosperitas funds, bringing the asset manager’s equity under management to close to $2bn. This makes it one of Brazil’s largest independent managers of commercial properties. Prosperitas’ PE funds have historically posted returns of 20% and higher, say buysiders. Brazilian commercial real estate has enjoyed substantial investor scrutiny in recent weeks. BR Properties’ IPO which priced late Thursday, and will keep it in the spotlight, while WTorre, another Sao Paulo-based commercial developer, filed for an IPO recently. The Prosperitas fund is managed by Jorge Carlos Nunez, Luciano Lewandowski and Maximo Lima.