BGR Asset Management

BGR Asset Management Ltda. is an independent real estate asset manager founded in 2022 as a spin-off of the historic BR Properties, one of Brazil's largest corporate office asset administrators. Headquartered in São Paulo (CENU Torre Oeste, Brooklin), BGR was born under the leadership of four former senior executives from BR Properties: Martín Jaco (CEO, former CEO of BR Properties and former CBRE), André Bergstein (CFO, former CFO of Gafisa and BFRE), Gabriel Barcellos, and Felipe Guazzelli — all four with over 12 years each at the predecessor company. The asset manager started operations with approximately R$ 2.5 billion in assets under management, inherited from the agreement with GP Investimentos, which acquired 100% of BR Properties in 2023 and came to hold 20% of BGR's capital. The 18 team members also came from the predecessor company, constituting rare operational continuity in the market.

Track record and governance

BGR's track record is, in practice, BR Properties' track record: the founders completed more than R$ 28 billion in real estate transactions over 17 years, navigating different cycles of the Brazilian corporate market. BROF11's governance structure combines BTG Pactual Serviços Financeiros DTVM as administrator and registrar and Ernst & Young as independent auditor. In May 2025, BGR reached a major milestone: approval at a General Meeting (AGE) of a new remuneration structure, with a reduction in the recurring management fee and the inclusion of a variable component tied to disposal results — an alignment model uncommon in the FII sector. Communication with unitholders is consistent: detailed monthly management reports, transparent dividend projections, and timely updates on events (leases, terminations, CRI amortization). The asset manager maintains ANBIMA certifications and is regularly registered with CVM.

Strategy and funds under management

BGR operates with a private equity thesis applied to the real estate segment: it deliberately separates capital gain vehicles from income-generating vehicles — something that the listed company format (BR Properties) made difficult. Its platform includes five products: BROF11 (AAA corporate offices), BETW11 (E-Tower, where BROF11 holds 86.24%), BGRB11, BGR Logistic Warehouses, and BGRJ11. In BROF11 — NAV of R$ 1.28 billion, two AAA properties (Passeio Corporate/RJ and E-Tower/SP) and GLA of 90,573 m² —, the ongoing strategy is the orderly disposal of assets with CRI amortization and progressive capital distribution, creating liquidity events that can bring the share price closer to net asset value. In 2026, BROF11 accumulated a valuation of over 14%, leading the corporate slab segment; even so, the share traded at R$ 54.60 — about 50% below the NAV of R$ 109.86 — in June 2026, with a DY of 11.8%.

Strengths and points of attention

• Team rooted in the asset: partners and managers were responsible for the same properties at BR Properties — operational and relational knowledge that is hard to replicate.
• Structural alignment via variable fee: the change approved in 2025 reduces the fixed fee and creates a real incentive regarding valuation/disposal — a differential compared to most FII managers.
• Historical discount as asymmetry: BROF11 trades at ~50% of NAV with an 11.8% DY, creating a relevant opportunity for those betting on unlocking value via asset sales.

• Portfolio concentration: the entire thesis depends on two properties; terminations by relevant tenants can pressure dividends abruptly.
• Structural vacancy in Rio de Janeiro: the downtown Rio office market still operates with a vacancy rate of around 25%, without a consolidated recovery — Passeio Corporate faces this context directly.
• Single-product manager in the retail market: despite five vehicles, only BROF11 has secondary market liquidity accessible to individual retail investors.

Which investor it makes sense for

BGR and BROF11 make sense for the value investor with a 2 to 4-year horizon, willing to tolerate short-term volatility and dividend fluctuations while waiting for liquidity events — property sales and CRI amortization — that should bring the share price closer to net asset value. It is not recommended for those seeking stable and predictable monthly income: the core thesis is asset value unlocking. The essential point to watch: the speed of disposals, the evolution of vacancy at Passeio Corporate, and the behavior of major tenants.