What Happened to INRD11?
The liquidation value came in R$ 4.13 below expectations, and the timeline was delayed by nearly two months. The administrator of the real estate fund INRD11 (Inter Residence) published a material fact notice on the evening of October 15, 2026, setting the estimated total liquidation value at R$ 91.2487978 per unit—compared to the roughly R$ 95.38 the market had projected since the sale of the properties for R$ 108 million. Aside from the lower payout, the liquidation process, which was originally scheduled to conclude on October 28, has been extended through the end of December.
The payment breakdown consists of two parts: Tranche A, which delivers units of another fund (INHF), and Tranche B, paid in cash. Investors who bought units on the secondary market at R$ 72.65 before trading closed still realize a positive return, but the profit margin has shrunk, and the cash portion will be heavily trimmed by withholding income tax.
The difference of R$ 4.13 per unit represents a 4.3% reduction compared to the gross theoretical estimate. It reflects transaction costs, operational withholdings, vehicle winding-down expenses, and accounting adjustments for the residential portfolio prior to the final transfer of the five buildings.
How Much Will Each Unitholder Receive and in What Form?
The payout will be made primarily in units of another FII and only 7.4% in cash. For every 1 unit of INRD11, holders will receive a combination of INHF assets plus a cash balance, calculated based on the closing position of October 16, 2026.
8.045324971 INHF units delivered directly to the brokerage account on 10/21/2026.
Cash amortization estimated for up to Feb 12, 2026, subject to final expenses and tax deductions.
In practice, investors who expected to receive liquid cash to redeploy as they saw fit will instead hold a portfolio of INHF units. The established ratio is 8.045324971 INHF units for every old INRD11 unit. Because B3 does not accept fractional units in standard secondary market trading, any fractional remainders will be grouped by the administrator and auctioned on the exchange, with the net proceeds credited later.
Meanwhile, Tranche B, estimated at R$ 6.77 per unit, is not set in stone. The material fact notice explicitly states that this amount may vary upward or downward depending on remaining expenses and final revenues recorded through the completion of the winding-down process.
What Is the New Official Liquidation Schedule?
The timeline has been extended by nearly two months compared to the original October 28 date. The delivery of units will still take place quickly in October, but the formal cancellation of INRD11’s tax ID (CNPJ) will not happen until Christmas Eve.
This timeline shows that the transaction was split into two distinct stages. The market risk of the physical assets transfers almost immediately to unitholders on October 21, when they become holders of INHF. On the other hand, the cash remains tied up in the structure for another six weeks, serving as a buffer for notary fees, condominium adjustments, and final liability settlements.
How Does Withholding Tax Impact Tranche B Cash?
Withholding tax can swallow more than 85% of the cash balance for investors who forgot to register their cost basis on the Cuore platform. Under tax rules for real estate funds, liquidation requires administrators to withhold 20% on capital gains at the source.
The administrator used the Cuore platform between 09/01 and Jan 10, 2026 for unitholders to report their individual average acquisition costs. The problem arises for those who failed to complete this formal procedure within the regulatory deadline:
If the average cost was R$ 72.65 (pre-lockup closing price), the total gain on R$ 91.25 is R$ 18.60. The 20% tax comes to R$ 3.72 per unit, deducted from the R$ 6.77 in cash. This leaves R$ 3.05 in cash.
By law, the administrator applies a minimum historical cost of R$ 62.33. The fictitious gain jumps to R$ 28.92, resulting in a withheld tax of R$ 5.78 per unit. This leaves a meager R$ 0.99 in liquid cash.
This withholding mechanism produces a severe consequence: the tax owed on the gain realized across the entire operation (Tranche A + Tranche B) is deducted solely from the Tranche B cash. Because INHF units cannot be broken down and withheld to pay taxes at the source, the cash balance is drained to satisfy the tax obligation owed to Brazil's federal tax authority.
Did Arbitrage Investors Still Make a Profit?
Yes, but the final gain shrunk substantially compared to the initial promise. Back when B3 permitted trading of the units (the window closed on August 26, 2026), INRD11 traded at R$ 72.65. The market calculated a liquidation value of R$ 95.38 based on the R$ 108 million building sale, which implied an attractive 23.8% discount on the price.
Investors who paid R$ 72.65 and correctly declared their average cost on the Cuore platform will achieve a gross return of 25.6% over a holding period of roughly two to four months (R$ 91.25 ÷ R$ 72.65 - 1). After deducting the R$ 3.72 per unit in income tax, the investor pockets a liquid equivalent of R$ 87.53, representing a net profit of approximately 20.5%.
The crucial caveat is that this return does not materialize as available bank funds: 92.6% of the redeemed value remains tied up in units of another real estate fund. To realize the profit in cash, investors will depend on the liquidity and market value that INHF commands when it is admitted to free trading.
What Does This Mean for Current Unitholders?
You do not need to take any manual action right now: your INRD11 units will be automatically replaced by INHF and cash. The record date is October 16, 2026. On October 21, 2026, your INRD11 position will disappear from your brokerage account, and 8.045 INHF units will be credited for every unit held. The remaining cash (R$ 6.77 gross minus withheld taxes) will be deposited into your account by December 2, 2026. Fractional INHF units will be sold at a joint public auction on B3 at a future date.
It is important to check your brokerage statement on October 22 to verify that Tranche A was credited correctly. If you hold smaller positions (for example, 10 units of INRD11), you will receive 80 whole INHF units, while the fractional remainder of 0.453 units will go into the public auction pool.
What to Monitor Until the Fund Shuts Down Permanently
Keep an eye on the fractional auction, the final cash credited in December, and the trading price of INHF. The history of INRD11 is coming to an end, but your capital's liquidity remains exposed to market risk.
Credit of INHF units on 10/21/2026 — Verify that the ratio of 8.045324971 units per old INRD11 unit was deposited into your custody account without undue withholdings.
Fractional auction results — Pay attention to future announcements from Inter DTVM regarding the auction date for the fractional unit remainders and the average price achieved.
Tranche B statement on Feb 12, 2026 — Check the final net cash amount deposited. The estimated value of R$ 6.77 may see minor adjustments, and the tax deduction should reflect the 20% rate based on your Cuore report.
INHF market pricing — Evaluate the quality of the properties in the new vehicle, the dividends it distributes, and whether it makes sense to hold the new units long-term or sell them on the secondary market.
The Verdict: INRD11's Liquidation Ends the Cycle, But Demands Patience
Publishing an estimated value of R$ 91.25 closes out the operational uncertainty for the real estate fund INRD11, but frustrates investors who projected a gross R$ 95.38 and expected the process to wrap up in October. Extending the timeline to December and concentrating 92.6% of the redemption in INHF units show that the operation was not a simple capital return, but rather a merger involving a forced vehicle migration.
For investors who bought at R$ 72.65, the nominal return is indisputably positive and easily beats Brazil's interbank reference rate (CDI) for the period. However, investors are now unitholders in a new asset (INHF) and must monitor its governance and yield to ensure the arbitrage premium won't evaporate on the order book.
