By Brazil Stock Guide – MEZ-RZK Novo Centro, a consortium of five companies, won the auction for the new São Paulo state government headquarters in a 30-year public-private partnership valued at about 6 billion reais (R$ 6 billion), according to information released Thursday (26).
The bidding session was held at B3 SA Brasil Bolsa Balcão (B3SA3), with the winner defined by the highest discount offered on the maximum monthly public payment, set at roughly 76.6 million reais.
The consortium, led by Zetta Infraestrutura, includes M4 Investimentos, Engemat, RKZ Empreendimentos and Iron Property. The group offered a 9.62% discount on the maximum monthly consideration, outperforming rival Acciona-Construcap, which submitted a 5% discount bid. Spain’s Acciona SA trades in Madrid (ANA SM), while Construcap is privately held.
The project will relocate the state administration from the Palácio dos Bandeirantes in the Morumbi district to Campos Elíseos, in downtown São Paulo. The move fulfills a campaign pledge by Governor Tarcísio de Freitas and is aimed at revitalizing the city’s central area.
Plans call for seven buildings to house the governor’s office, state secretariats and agencies currently spread across more than 40 addresses. The complex is expected to accommodate about 22,000 public servants and include a theater, auditoriums and multiuse rooms.
The development also earmarks 25,000 square meters for retail and services, mostly at ground level. Urban renewal measures include restoring 17 listed properties and expanding green areas at Praça Princesa Isabel by more than 40%, which will require the deactivation of a nearby bus terminal.
State estimates indicate the construction phase could generate up to 38,000 direct and indirect jobs, in addition to 2,800 positions tied to new commercial activities in the area.
The project was structured by the State Secretariat for Investment Partnerships with technical support from Companhia Paulista de Parcerias. Contract signing is expected around midyear, with works starting within 12 months. Initial deliveries are projected by 2028 and full completion by 2031.
Beyond construction, the winning concessionaire will be responsible for operating and maintaining the complex throughout the 30-year term, including cleaning, security and facility management services.
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