Patria Investments has announced an agreement to acquire VBI Real Estate (VBI). The transaction is structured in two stages, the first of which entails the acquisition of 50% of VBI by Patria. The completion of the second stage will lead to full ownership and integration of VBI into Patria’s platform.

VBI Real Estate is an independent alternative asset manager in Brazil with approximately BRL5 billion (US$0.95 billion) in assets under management, including BRL3.7 billion (US$0.70 billion) in permanent capital REIT structures and the remainder in drawdown-style development funds. VBI’s real estate investment products include core and opportunistic investment vehicles focused on the logistics, office, structured credit, retail, residential and student housing segments.

The first stage is expected to close within 60 days and entails the acquisition of 50% of VBI for cash consideration, plus the addition of Patria’s two existing Brazilian REIT vehicles. The second stage is expected to commence within 24-36 months.