SAO PAULO, BRAZIL-A joint venture of Clarion Partners and DHL Supply Chain is building a three-building industrial complex here. Clarion, with an unnamed client as a partner, purchased the 78 acres of land and is initially investing $100 million.
The three buildings will total 1.4 million square feet. Construction started in December, and should be finished by 2017, according to a Clarion statement.
DHL has agreed to lease about half the first building when it is completed this summer, and is expected to lease substantial portions of buildings two and three for itself and its clients. The two buildings will be built in order, and should be finished in mid-2013 and mid-2014. The DHL-Clarion venture has agreed to develop more industrial properties in Brazil, with announcements to come in the future.
Jeb Belford, managing director at Clarion, said in the statement that Sao Paulo is Brazil’s largest industrial market, but only one-quarter of its current industrial stock is estimated to be investment grade. There’s been significant rent growth in the market as vacancies have remained low, following an expansion of the middle class and broader demand for goods.
“With a lack of high-quality warehouse space in many parts of the country, we believe this provides an excellent opportunity to participate in the continued expansion of this increasingly important market,” Belford said. The country is also experiencing attention from the planned hosting of the 2014 World Cup and the 2016 Olympics.
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