Standard Life Investments has made two acquisitions in Brazil at a combined price of nearly BRL110m (GBP40m) on behalf of its Select Property Fund.

The Select Property Fund now has 48 per cent of its portfolio allocated to direct commercial property markets across the globe.

The latest acquisition is the refurbished Bela Paulista Building, situated at 2421 Avenue Paulista, São Paulo, one of the most prestigious offices addresses within Brazil’s commercial capital.

Purchased at a price of BRL54.5m (GBP19.9m), the property has a total lettable area of 6,542 square metres with retail space at ground and mezzanine levels and an additional 14 floors of office space above. The office tower is nearing completion of a major refurbishment and letting is progressing well with 50 per cent of the floor space let to four strong international and Brazilian domestic tenants.

The acquisition represents a revisionary net income yield of 12.1 per cent.

The second purchase is the Madison Building, located at Vila Olimpia, São Paulo. It sits in close proximity to two of the city’s most prominent office avenues, Faria Lima Avenue and Marginal Pinheiros.

The building is arranged over six floors, with a 1,500 square metre floor plate and a total lettable area of 8,432 square metres. It was acquired for BRL52m (GBP18.9m) representing a net reversionary yield of 11.2 per cent. The property is 100 per cent let to four strong international and Brazilian domestic tenants.

In October 2009, Standard Life Investments made its first direct investment in the Brazilian real estate market with the BRL15m acquisition of the Alana II Building, a multi-let office property in São Paulo.

Andrew Jackson, manager of the Select Property Fund at Standard Life Investments, says: “We are particularly positive about the prospects for the Brazilian economy and its associated commercial real estate market, so its great news for our investors that with the assistance of our Brazilian partner, Eccelera, we’ve acquired two such sought after properties. These acquisitions reinforce our view that the global property market has the potential to generate strong returns over the medium term, particularly in Asia Pacific and the Americas.”