Largest shopping centre acquisition in Brazil: Iguatemi buys two malls in São Paulo

Iguatemi S.A., the third largest retail real estate developer in Brazil, announced the completion of the purchase, carried out in consortium with a group of investors, of 55.9 percent of the Pátio Paulista Shopping Centre and 50.1 percent of the Pátio Higienópolis Shopping Centre both located in São Paulo, Brazil.

The deal, for which negotiations began in the middle of last year with Brookfield, which owned both developments, was closed for 2.58 billion Brazilian real, making it the largest shopping centre purchase ever made in the country.

Iguatemi paid 1.47 billion Brazilian real in the transaction and acquired a 29% stake in Pátio Higienópolis and 11.5% in Pátio Paulista. The company will be responsible for managing both malls.

The other participants in the consortium are the real estate investment funds managed by BB Asset, XP and Capitânia and Braz Participações.

Prime location attracts millions of visitors to both developments

The Pátio Paulista Shopping Centre opened in 1989 just a few metres from Avenida Paulista. This is the sociocultural heart of the city and one of the most traditional commercial centres in São Paulo. With approximately 41,500 square metres of gross leasable area and an occupancy rate of over 99 percent, divided into around 270 stores, the shopping centre receives around 12 million visitors annually. It is boosted by its strategic location, surrounded by more than 500 buildings and 360,000 square metres of corporate offices on Avenida Paulista and the surrounding area.

The Pátio Higienópolis Shopping Centre, opened in 1999, is located in one of the neighbourhoods with the highest family income in São Paulo. It has been part of Iguatemi's portfolio since 2015 and has been managed by the company since 2013. With the company's expertise in high-end assets, the shopping centre has become one of the three most profitable developments in Iguatemi's portfolio. Its 34,100 square metres and more than 240 stores attract over seven million visitors annually. The development also has Casa Higienópolis, a space for corporate and social events that has been completely restored by Iguatemi, bringing back all its historical value to the neighbourhood.