Real estate tycoon Sam Zell and investment firm Pátria Investimentos Ltda have combined two leading Brazilian self-storage firms in a joint venture that aims to more than double their capacity by 2020, the companies said on Wednesday.
Under their plan, the entity resulting from the merger of Zell's GuardeAqui and Pátria's Kipit will open 30 storage facilities in Brazil over the period, an investment that could reach 600 million reais ($187.76 million) based on the average cost to build a unit.
Each unit costs about 20 million reais to set up, Fauze Antun, real estate partner at Pátria, said in an interview. He declined to quantify the investments of each of the companies, but said that most of the funds should come from Pátria, since Kipit is the smaller partner.
With about 20 units, the joint venture will comprise one-third...[Keep Reading