BRMALLS Increases its Interest in Shopping Tijuca to 100%

Dec 09, 2010, 17:30 ET from BR Malls Participacoes

RIO DE JANEIRO, Dec. 9, 2010 /PRNewswire/ -- BR MALLS PARTICIPACOES S.A. (OTC: BRMSY; BM&FBovespa: BRML3), a publicly held company headquartered at Avenida Borges de Medeiros no. 633, 1st floor in the city and state of Rio de Janeiro ("Company"), announces, in accordance with Comissao de Valores Mobiliarios ("CVM") Law 358, of January 3rd, 2002, to its investors and the market that on this date:

(I) the Extraordinary General Meeting approved the acquisition, by Ecisa Engenharia, Comercio e Industria Ltda., a subsidiary of the Company, of shares representing 50.01% of the capital stock of Cima Empreendimentos do Brasil S.A., company which owns Shopping Tijuca, under the terms of the Purchase Commitment Agreement, executed by the Company on November 19, 2010; and

(II) the Company concluded the acquisition of an additional interest of 50.01% of Cima, now totaling 100% interest in Shopping Tijuca. The acquisition price was R$375 million, of which R$234.4 million will be paid in 10 quarterly installments starting on the 21st month. We estimate that the mall will generate R$78.2 million in NOI (including service revenue) for BRMALLS in 2011, one of our largest NOI generators. The nominal entry cap rate (2011) is 10.0% and the real and stabilized estimated cap rate is 12.2%. The estimated IRR for the acquisition is 14%, real and unleveraged, and 16.2% real and leveraged.

With the acquisition of Shopping Tijuca, BRMALLS raised its own GLA by 17.7 thousand m2, reaching a total of 593.2 thousand m2. Total GLA is 1,197.1 thousand m². Moreover, with the acquisition, we increased the number of malls we hold 100% interest from 8 to 9. Additionally, after the acquisition we will increase the number of malls managed by BRMALLS from 28 to 29 and the number of malls leased by the Company will increase from 31 to 32.


Investor Relations Director

Leandro Bousquet Viana


BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 40 malls, comprising 1,197.1 thousand m2 of GLA and 593.2 thousand m2 of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments.

SOURCE BR Malls Participacoes