Partially: on October 30, CCME11 signed a memorandum of understanding to sell the entire Kasa Vila Olímpia property for R$ 126 million, though the sale is not yet closed. This is the property that our June report showed as 100% vacant and that our analysis expected to see recover. Rather than wait, the fund manager decided to exit, locking in an estimated capital gain of R$ 23.5 million.
Did the CCME11 real estate fund sell the Kasa Vila Olímpia property?
Not yet. The Material Fact disclosed on October 30 outlines a Memorandum of Understanding (MOU) to sell all autonomous units of the residential building in Vila Olímpia, São Paulo. An MOU is an agreement of intent: the closing is subject to standard market conditions customary in real estate transactions and the signing of definitive documents. The filing does not disclose the buyer's identity or the scheduled date for the deed.
The fund manager, Canuma Capital, states that the price is in line with the asset's appraisal. This matters because the property was vacant; management is not describing the transaction as a discounted exit. Readers should note that the key news is the act of selling, not the vacancy, which has been known since Q2.
How significant is this sale for the fund?
The price equals about 17.6% of the current net asset value of R$ 714 million (126 ÷ 714). This is not a minor portfolio adjustment. The estimated capital gain is R$ 23.5 million, after deducting acquisition costs and capital expenditures (CAPEX), which works out to roughly R$ 0.35 per unit. Based on the closing price of R$ 8.48 on October 30, this represents 4.1% of the unit price (0.35 ÷ 8.48). Based on the calculation of gain equal to price minus costs, the property was carried on the fund's books at approximately R$ 102.5 million (126 − 23.5), an approximation since the document does not detail other transaction expenses.
What would be different if the sale did not happen? Kasa would remain vacant. Our analysis previously warned that if the property failed to re-lease and Hotel Selina's revenue proved unsustainable, operating results could pressure distributions. The sale removes this risk from the table: the fund is no longer dependent on a building that, according to its latest balance sheet, had no tenants. However, the payment will not be received all at once.
How will the buyer pay?
The purchase price is split into three installments. The 12- and 18-month deadlines begin from the signing of the deed for each stage (or the single stage):
| Installment | Amount | Timing | % of Price |
|---|---|---|---|
| 1st | R$ 113.0 million | Upon execution of the deed for each stage, proportionally | ~89.7% |
| 2nd | R$ 6.5 million | 12 months after the deed | ~5.2% |
| 3rd | R$ 6.5 million | 18 months after the deed | ~5.2% |
| Total | R$ 126.0 million | — | 100% |
The practical takeaway: nearly 90% is paid in cash at closing. The remaining R$ 13 million (10.3% of the price) is receivable over the next year and a half. The document does not state whether these final two installments are subject to inflation adjustment, interest, or guarantees. Because of this, the estimated gain of R$ 0.35 is presented as "pending full receipt" rather than cash already in hand. Deeds may be executed in stages, as the property consists of multiple autonomous units.
Will CCME11's distribution change following the sale?
Not immediately. Kasa was already 100% vacant as of the June 30 balance sheet, and the fund continued paying R$ 0.086 per unit in August and September, as we detailed in our September analysis on distributions and vacancy. Hotel Selina sustained the revenue. Selling a property that generated no rent does not strip income from monthly distributions.
What could change is how the cash is deployed. The R$ 113 million from the first installment will turn into cash, and the filing does not state whether the capital gain will be distributed to unitholders or how the cash will be reinvested. To put this in perspective: the R$ 0.35 per unit equals about four months of the current distribution of R$ 0.086 (0.35 ÷ 0.086 = 4.1) if distributed all at once, which the document does not state will happen. In May, management signaled an interest in allocating reserves to equity FIIs trading at a discount. Under this scenario, the sale proceeds could generate new income, but that remains an intention rather than a formal announcement. The fund also recently sold another property, Jardim Sul, which we analyzed in a separate piece, reinforcing the picture of a manager actively recycling assets.
What points favor the fund and what still weighs on it?
- The primary focus of our analysis—the vacant Kasa property—leaves the portfolio if the sale is completed.
- The price is in line with appraisals, according to the manager, yielding an estimated capital gain of R$ 23.5 million.
- Roughly 90% of the price is paid at closing, giving the fund cash to redeploy.
- It is still an MOU: without definitive documents and with closing conditions yet to be met, the deal could change or fall through.
- R$ 13 million is split across 12- and 18-month installments, with no information regarding inflation adjustment or guarantees.
- No destination has been announced for the cash, and there is no confirmation that the capital gain will be distributed.
This sale alone does not alter the BUY thesis: the fund continues to trade at a discount to its net asset value (units at R$ 8.48 versus an NAV of R$ 10.54, representing a P/NAV ratio of 0.80) with a distribution yield near 11.6% annually. What the sale does is replace the portfolio's most pressing question—"will Kasa lease up again?"—with a more comfortable one: "what will the fund do with the cash?"
If you own CCME11 units, nothing changes for this month's distribution as a result of this news, and there is no immediate action required. The Kasa vacancy risk is easing, but it will only disappear once the sale is finalized. Until then, monitor the documents confirming the transaction and any announcements from the fund regarding the cash proceeds.
What to Monitor Going Forward
Definitive documents and deed — the initial R$ 113 million installment is only paid upon execution of the deed. Without signed final agreements, the MOU does not become a completed sale.
Upcoming distributions — the benchmark is R$ 0.086 per unit, the amount paid in August and September. Below that level, Kasa was not the only problem; above it, capital gains may be getting passed through.
Use of cash — new purchases of FIIs, real estate receivables certificates (CRIs), or properties announced by the manager. Cash sitting idle yields less than the investment thesis requires.
Final installments — two payments of R$ 6.5 million, due 12 and 18 months after the deed. Delays or renegotiations would serve as a warning sign.
