Frequently Asked Questions

Perguntas Frequentes

1. What is an FII?

A Real Estate Investment Fund is a pool of resources for investment in real estate assets. The objective of FIIs is not only to distribute monthly income, which is exempt from income tax for individuals, but also to bring capital gains to its investors through the valuation of its shares.

 

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2. What is the purpose of PATC11?

Pátria Corporate Buildings FII aims to select, acquire and actively manage a portfolio of high quality corporate properties (which can be slabs or whole buildings) in the largest cities in the country, especially in the city of São Paulo. Such investments are expected to bring value to the fund’s quotaholders both through the monthly distribution of the proceeds from the rental income of its assets and through capital gains arising from a share appreciation.

 

Find out more about the fund’s investment strategy and the competitive advantages of Pátria by clicking here.

3. How do I invest in PATC11?

The shares of Pátria Corporate Buildings FII are traded on B3 through the code PATC11. You can acquire them on the secondary market through a stock brokerage firm by entering the PATC11 code into the home broker system.

Click here and see the complete list of accredited brokerage houses through which you can invest in our fund.

It is worth remembering that the liquidation period of the FIIs is the same as the shares and works on the same rules. The purchase is immediate and the possession of the asset starts to run from the date of purchase, but the financial settlement occurs in D + 3 (three business days).

4. What is the minimum investment in the fund?

Real estate investment funds (FII) are accessible to investors of any size. The minimum investment in any FII traded on the stock exchange is a quota, so it is enough to see the face value to know the minimum contribution to start investing in PATC11.

5. Does the fund have a deadline?

Real Estate Investment Funds have an indefinite term, that is, no date is set for their settlement. This means that your funds will remain invested in the fund until the shareholder decides to sell the shares in the stock market, the so-called secondary market.

Pátria recommends that the investment in PATC11 be carried out with a focus on the long term, since it is expected to generate value to the quota holders both through the monthly distribution of income and through the valuation of quotas over the years.

6. Is it possible to redeem my invested amount?

The FII are closed condominiums, which means that their quotas can not be redeemed. In this way, a shareholder who is no longer interested in staying in the fund and wants to dispose of his investment must sell his shares in the stock market, the so-called secondary market. Such negotiations are carried out through accredited brokers, by direct contact (e-mail, telephone) or through the home broker system.

Pátria recommends that the investment in PATC11 be carried out with a focus on the long term, since it is expected to generate value to the quota holders both through the monthly distribution of income and through the valuation of quotas over the years.

7. In addition to real estate, what other assets can the fund invest in?

The main focus of PATC11 is to acquire corporate property (slabs or entire buildings). The available cash or resources not used temporarily in the acquisition of real estate will be invested in liquid assets such as public securities or other assets with real estate, such as LCIs (Real Estate Letters) or CRIs (Real Estate Receivables Certificates).

8. Does the fund have concentration limits per asset?

The PATC11 regulation does not impose concentration limitations per asset for its equity. However, Pátria does not intend to allocate more than 25% of the volume of the fund in a single real estate, since much of the investment strategy is based on portfolio diversification. In relation to rental income, the limit sought is a maximum of 20% of exposure per tenant.

9. What is the source of the monthly income distributed by the fund?

The proceeds of the fund are mostly from rent payments by tenants of the properties that make up their portfolio. There may also be some financial income associated with the application of the fund’s cash until the acquisition of the real estate.

10. What is the frequency of rent payment?

The proceeds are paid monthly to the quotaholders on the sixth business day of each month. In order to receive them, the customer must hold the quotas until the last business day of the previous month.

11. What is the fund management fee?

Pátria Corporate Buildings FII has a management fee of 1,175% – an amount that includes the remuneration of the gesture and specialized consultant (Pátria) and the administrator, custodian and custodian (Modal).

In favor of the profitability of quota holders, Pátria chose to reduce its remuneration in the first 12 months of the fund. In this way, the administration rate of the PATC11 from April 2019 to March 2020 will be 0.675%.

12. What is the tax applicable to fund investors?

Individuals are exempt from income tax on the income distributed by the fund, provided that (i) the quotas of the fund are admitted to trading exclusively on stock exchanges or on the organized over-the-counter market, (ii) the fund holds at least 50 quota holders and (iii) the shareholder does not hold quotas that represent 10% or more of the total issued or that entitle him to receive income higher than 10% of the total earned. For legal entities, there is an incidence of Income Tax on income at the rate of 20%.

In the sale of quotas on the secondary market, both individuals and legal entities are subject to the income tax, at a rate of 20%, on the capital gain.

13. After requesting quota sales, how long will the money be available in my account?

After selling the shares of an FII, the funds will be credited to the shareholder’s account in your brokerage house on D + 3 (three business days), just like in the sale of a share.

14. What is the frequency of revaluation of real estate?

According to CVM Instruction 516/11, real estate funds must reassess their portfolio assets at least once a year. PATC11 will evaluate its properties annually in November.

15. Do the properties have insurance? What insurance coverings do you foresee?

Yes. The policies will be contracted with a first line company and the insurance will cover the property and its equipment and accessories against its main risks (such as fire, explosions, windstorm, hail, loss of rents in case of loss and others).

16. Does the fund pay any expenses when acquiring new properties?

The costs involved in the acquisition of a property are: (i) the amount paid properly by the property, (ii) brokerage commission when applicable; (ii) costs of ITBI and other fees; (iii) costs of legal, technical and environmental due diligence and (iv) costs associated with the preparation of an appraisal report.

17. Can the fund get into debt?

Real Estate Investment Funds can not take out debts for their portfolio. However, the regulation allows the assets to be acquired piecemeal and / or have their income securitized over the life of the fund.

The PATC11 does not intend to work with indebtedness during its evolution, a factor that significantly reduces the risk involved in the investment.