Retail giant Iguatemi is set to reshape So Paulos luxury shopping landscape with a R$2.6 billion ($450 million) acquisition.
The company has struck a deal to buy Brookfields stakes in two prime shopping centers: Ptio Higienpolis and Ptio Paulista.This move marks a significant shift in Brazils high-end retail sector.
Iguatemi will gain a 60% stake in Ptio Paulistas main complex and 50.1% of Ptio Higienpolis.The deal aligns with Iguatemis strategy to dominate So Paulos upscale retail market.
To fund this massive purchase, Iguatemi has formed a consortium with BB Asset, XP Asset, Capitnia, and BTG Gestora.This approach allows the company to expand without overextending financially.
The payment structure is 70% upfront, with the rest spread over two years.The numbers suggest a promising return.
Iguatemi expects a 7.4% entry cap rate based on 2025 projections.
When including management revenues, this rate jumps to 10%, with a 17% annual Internal Rate of Return.So Paulos Luxury Shopping Landscape Shifts: Iguatemis Major Acquisition.
(Photo Internet reproduction)This isnt Iguatemis first big move.
Earlier, it partnered with BB Asset to buy Brookfields share in Rio Sul shopping center.
The latest deal cements Iguatemis position as a major player in Brazils retail real estate.For Brookfield, this sale marks its exit from Brazils shopping center market.
The Canadian firm has been gradually selling off its Brazilian retail properties over recent years.The deal still needs approval from Brazils antitrust regulator and consent from the malls co-owners.
Bradesco BBI and BTG Pactual managed the sale for Brookfield, while G5 Partners represented Iguatemi.