The tenants of Fazenda Vianmancel, which is part of the Real Estate Fund BTG Pactual Terras Agrícolas (BTRA11), are asking for judicial recovery. The R$81 million asset represents approximately 24% of the R$342.2 million equity of the FII BTRA11. The information was first published by BP Money.
This Wednesday (22), BTRA11 sank 16.49%, quoted at R$ 84.92. At the opening of the day, the value was R$ 101.69.
BTG Pactual (BPAC11) entered into a purchase and sale agreement with Milton Paulo Cella, previous owner of Vianmancel Farmfor the acquisition of the asset in August 2021. In total, the transaction would add R$0.22 per share per share to shareholders’ dividends monthly, at the time of the deal.
After the market closed on Wednesday (22), the fund released a material fact acknowledging the request for judicial reorganization made by the lessees, but that it did not hold the case file, since the action runs in secrecy. BTG also reported that there are other lawsuits filed by a creditor of Cella, which questions the transaction between the fund and the former owner. In a note, the manager states:
“Despite the fact that there is still no final decision on the merits, the preliminary decision recognizes that the Properties are the property of the Fund as a result of an existing and perfectly valid business.”
Located in Nova Maringá, Mato Grosso, the farm has a total area of approximately 3,148 hectares and mainly produces corn and soybeans. The fund also highlights that, according to the Mato-Grossense Institute of Agricultural Economics (IMEA), the region led the national rankings in the production of soybeans, corn, cotton, among others, during the acquisition period.
According to a material fact sent by BTG Pactual in the period, the objective is “the acquisition of productive agricultural land (rural and urban) and in the transformation phase (opportunistically) located in the main regions of the Brazilian territory”.
In the court document, the request was made by Milton Paulo Cella, Roseli Amália Zuchelli Cella and Vitor Augusto Cella, and the text indicates a liability of R$ 327.6 million.
“They initially request the deferral of the procedural costs, on the grounds that, based on the value of the case, the total of distribution costs amounts to R$ 87,895.00, and that they do not have conditions, ‘in this moment, to pay the amount in full (…) without directly impairing its cash flow’. Alternatively, they fight for installments, as provided for by the Code of Civil Procedure”, says an excerpt.
However, another publicly released court document indicates that there would be socio-environmental problems in the asset. But, in a note on the conclusion of the contract, BTG points out that, after an evaluation by ESG specialists, it was able to identify risks.
“After extensive analysis, in addition to the positive differentials identified in the Property, Management also verified socio-environmental liabilities in the asset; thus, the adequacy of all points that did not comply with the parameters required by the Fund were addressed in the contract as mandatory (indispensable) conditions for carrying out the operation, reinforcing the Fund’s ESG bias”, says the text.
In the note released to the market in 2021, the manager states that it was agreed, with Milton Cella, former owner, to occupy the property for a period of 10 years, with a monthly value of R$ 741,500. Finally, the most recent report released by the BTRA11 states that it has around 14,000 investors.