KLA advised TRX Real Estate Investment Fund (TRXF11) on the indirect acquisition of the Emiliano Rio Hotel property in Copacabana, Rio de Janeiro, valued at BRL 260 million. The transaction marks the fund’s entry into the luxury hospitality segment and reinforces its strategy of diversifying into high-end real estate assets.
The transaction was structured through the acquisition of 100% of the shares of Forte Mar Empreendimentos e Participações S.A., the company that owns the property located at 3,804 Avenida Atlântica, Copacabana, Rio de Janeiro. Facing directly onto Copacabana Beach, Emiliano Rio is one of Brazil’s most iconic boutique hotels: a five-star property with 90 rooms, a member of the Small Luxury Hotels of the World network, and ranked third among Rio de Janeiro hotels on TripAdvisor.
The property will remain linked to the Emiliano Group under a long-term atypical lease agreement with a total term of 20 years, including an initial 10-year atypical lease period and annual rent adjustments based on Brazil’s IPCA inflation index. The Fund will have no direct exposure to the hotel’s operations, preserving its real estate investment profile. The total purchase price of BRL 260 million will be paid in three installments: BRL 30.6 million in units of the Fund subscribed by parties related to the sellers; BRL 114.7 million paid at closing; and BRL 114.7 million payable within six months, with all amounts adjusted by the IPCA.
Upon completion of the transaction, TRXF11 will hold, directly and indirectly, 112 properties across 18 Brazilian states and the Federal District, totaling approximately 1.25 million square meters of gross leasable area and more than BRL 7.79 billion invested in real estate assets.
On KLA’s side, the transaction was led by partners Mariana Cortez, from the Corporate and M&A and Real Estate practices, and Livia Siviero, from the Capital Markets and Real Estate Business practices. The deal also involved Hebert Oliveira and Christian Taeger (Corporate and M&A), Roberta Capozzoli and Caroline Carvalho (Capital Markets and Real Estate Business), and Amanda Lemos (Real Estate).
