Deal was closed with the Sistel for R$ 495.9 million
Multiplan announced on September 1 the signing of a commitment to acquire holdings equivalent to 10.3% of the Gross Leasable Area ("GLA") of BarraShopping in Rio de Janeiro, and 8.0% of the GLA of MorumbiShopping, in São Paulo. This purchase raises the company's ownership interest in the GLA of these projects to 61.3% and 73.7%, respectively. The purchase-sale commitment was signed with the co-owner, Fundação Sistel de Seguridade Social, for a total value of R$ 495.9 million, divided into R$ 311.2 million for BarraShopping and R$ 184.7 million for MorumbiShopping.
The president of Multiplan, José Isaac Peres, noted that these stakes generated Net Operating Income of R$ 40 million (NOI) in the 12 months through June 2016 for Multiplan and said he was proud to acquire part of the projects because, for the company, they represent iconic assets.
"We counted on help from the pension funds when we needed to develop the malls. Their participation was very important to make the Multiplan what it is today. The business has been so good that most institutions do not want to sell. But we will always be willing to acquire stakes in our malls because we know the quality of all these projects," he said.
The completion of the sale is subject to fulfillment of the remaining conditions and approvals required by law. The Net Operating Income ("NOI") for the last 12 months through June 2016, weighted by purchased shares, was R$ 24.8 million for BarraShopping and R$ 15.5 million for MorumbiShopping, resulting in total NOI for the two stakes of R$ 40.3 million, excluding the amounts for the transfer of rights.
About Multiplan – Currently, it has 18 shopping centers located around the country: BarraShopping, New York City Center, ParkShoppingCampoGrande and VillageMall, in Rio de Janeiro (RJ); BH Shopping, DiamondMall e Pátio Savassi, in Belo Horizonte (MG); MorumbiShopping, ShoppingAnáliaFranco and ShoppingVilaOlímpia, in São Paulo (SP); JundiaíShopping, in Jundiaí (SP); ParkShoppingSãoCaetano, in São Caetano do Sul (SP); RibeirãoShopping and Shopping Santa Úrsula, in Ribeirão Preto (SP); ParkShopping, in Brasília (DF); ParkShoppingBarigüi, in Curitiba (PR); BarraShoppingSul, in Porto Alegre (RS); and Parque Shopping Maceió, in Maceió (AL). On June 30, the operating shopping mall portfolio totaled GLA of 774,568 m², more than 5,400 stores and annual traffic of consumers estimated at 180 million. Multiplan has an average ownership interest of 75.4% in its malls. Additionally, the company has two sets of commercial towers with total GLA of 87,558 m², which added to the shopping malls, totals a GLA of 862,126 m².
About the projects:
MorumbiShopping Complex, São Paulo - MorumbiShopping was inaugurated in 1982 with 32,195 m² of GLA. Since the opening, five expansions were completed, and today the mall has GLA of 56,102 m², and is integrated with a multi-purpose complex developed by Multiplan located in the midst of a number of real estate projects in a high-growth region of the city of São Paulo. Seeking to service a growing number of consumers, Multiplan is integrating two of its iconic developments in the region, MorumbiShopping with Morumbi Corporate, through a catwalk, designed to boost the synergy between them. In the second quarter of 2016, MorumbiShopping presented an average occupancy rate of 99.2%, and in the 12 months through June 2016, recorded satellites store sales of R$ 39,130/m², representing Multiplan's largest portfolio. In the same period, the project registered visitor traffic flow totaling 23 million persons to the 389 operations available in the mall. Multiplan currently is evaluating a project for future expansion of the shopping center and already has acquired potential additional building certificates.
BarraShopping Complex, Rio de Janeiro- Since its inauguration in 1981 with 24,246 m² of GLA, BarraShopping has not stopped growing. Seven expansions have already been completed and recently Expansion 3 of the Medical Center was concluded, adding 3,508 m² to the project, now with total GLA of 78,213 m². Elected for six consecutive years as the shopping center preferred by locals in a survey conducted by the O Globo newspaper, it is located in the midst of a multi-purpose complex formed by shopping malls and other commercial and residential ventures developed by Multiplan — such as the New York City Center and VillageMall. The complex is located in Barra da Tijuca, a region that has one of the biggest consumption potentials in the country¹, which received significant investments in infrastructure for the 2016 Olympic Games, integrating the neighborhood with other areas of the city, including the South Zone, through a new subway line. In the second quarter of 2016, the average occupancy rate of BarraShopping was 99.4%. Satellite store sales in the Mall totaled 35,281 R$/m² in the 12 months through June 2016, Multiplan's second highest. Over the same period, the complex formed by the BarraShopping and New York City Center registered a flow of 34 million visitors to the 586 operations offered by the complex.
