Brazil's HBR proposes to buy controlling stake of Helbor, taking it private - filing

Brazil's HBR Realty (HBR) has filed a proposal to acquire a controlling stake in Helbor, a major real estate developer in Brazil, in a move that would take the company private. The filing, made public recently, outlines HBR's intent to consolidate its position in the real estate sector by absorbing Helbor, which has been key player in São Paulo Metropolitan Region for over four decades.

Helbor has developed more than 265 projects, delivering over 42,000 units and 8 million square meters of built area. The company's land portfolio in São Paulo is estimated to have a total General Sales Value (VGV) of R$11 billion. However, recent months have been turbulent for Helbor, with a minority shareholder alleging accounting irregularities overstated financials by R$1.8 billion. The report, supported by a technical opinion from consultancy Black Stream, raised concerns about asset valuations and accounting practices, though it stopped short of labeling the issues as fraud.

Helbor has denied the allegations, stating that its financial statements are prepared in accordance with best accounting practices and are audited by an independent auditor registered with Brazil’s Securities and Exchange Commission (CVM). The company has not responded to further inquiries.

The timing of HBR’s proposal comes amid uncertainty for Helbor, including the unexpected resignation of its CFO and head of investor relations, Leonardo Piloto Fuchs. The proposed acquisition could signal a strategic shift for both companies, though its success will depend on regulatory approvals and the resolution of ongoing financial scrutiny.