Iguatemi (IGTI3) announced the signing of an investment agreement with Combrashop to buy a 17% stake in Shopping Rio Sul, in Rio de Janeiro, and then take over the management of the project, according to a related fact revealed on Monday. (8).
According to the statement, Iguatemi will carry out the transaction with the BB Premium Malls Real Estate Fund (BBIG11), which will subscribe and pay into the Certificates of Real Estate Receivables (CRIs) issued by Combrashop. The funds raised in debt by Combrashop will be used to acquire the shopping center.
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Iguatemi's investment in the operation is approximately R$360 million, 70% of which will be paid in cash and the rest in two interest-adjusted annual installments. This represents a Maximum rate 7.7% input to estimated 2024 operating income.
Taking into account the administrative revenues of the institution, net of taxes, the company estimates that Maximum rate Implied rate of return (IRR) of 11% and internal rate of return (IRR) of 17.1% for the investment.
After completion of operation, the interests of the parties involved in Rio Sul Shopping Center will be as follows:
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• Comprashop will own 50.1%.
• Iguatemi will own 16.6%.
• BBIG FII will retain 33.3%.
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“The investment agreement provides for the appointment of Iguatemi as director of Shopping Rio Sul, after the completion of the acquisition by Combrashop,” explains the relevant fact.
Iguatemi stresses that this investment is in line with its strategy of being present in prime real estate in the country's most important markets. “Iguatemi will add to its portfolio a stake in one of the most important shopping centers in the country, in Rio de Janeiro, which represents the second largest GDP in Brazil.”
Rio Sul Shopping Center, the first shopping center built in Rio de Janeiro, is located 15 minutes from Santos Dumont Airport, in Botafogo, one of the city's main neighborhoods. The project has 52,000 square meters of gross leasable area.
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The surrounding areas are highly qualified, with 81% of the area made up of A/B households and an average income twice that of the city. Within a 5 km radius are neighborhoods such as Ipanema, Copacabana, Leme, Lagoa, Flamengo and Leblon, as well as the city's tourist attractions and postcards.
“In recent years, the project has delivered strong financial performance, with double-digit annual growth in net revenues between 2021 and 2023,” Iguatemi said in a statement.
The deal is subject to the approval of the Administrative Council for Economic Defense (KED).
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