A potential sale of the Esther Towers real estate project in São Paulo could generate an extraordinary dividend of 25% for EzTec shareholders, BTG Pactual estimated in a report published on Monday.
The two AAA-standard corporate towers, located on Avenida Chucri Zaidan, are valued at R$1.62 billion, representing 45% of EzTec’s enterprise value. After accounting for taxes, subsidiary debt, and remaining investments, BTG projects R$838 million would be available for distribution. The analysts noted that shareholders would receive a 25% return while retaining shares trading at 3.5 times projected 2027 earnings and 0.55 times book value.
Construction of the Esther Towers began in 2019, with the first tower scheduled for completion by the end of 2026 and the second by the third quarter of 2027. The project has already incurred R$1.157 billion in investments, with an additional R$150 million expected to be spent. Monthly rents in the area range from R$110 to R$120 per square meter, and the complex is projected to generate net operating revenue of R$130 million annually, accounting for about 20% of estimated 2027 profit.
BTG maintained its buy recommendation for EzTec (EZTC3), raising the price target to R$21.00 from a prior reference price of R$13.21, implying a 59% upside potential. The analysts also highlighted a decline in the vacancy rate on Avenida Chucri Zaidan, from 32% at the end of 2022 to 13% in the second quarter of this year, as a supportive factor for the project’s valuation.
