Brookfield Closes $2.5 Billion Shopping Mall Deal: Key Details and Insights

The R$2.5 billion deal was finalized between Brookfield, Iguatemi, BB Premium Malls, BTG, and XP

Roberto Perroni, CEO of Brookfield in Brazil

By: SiiLA News

12/23/2024

Christmas came early for Brookfield. The multinational real estate company has sold the Pátio Higienópolis and Pátio Paulista shopping malls for R$2.5 billion. The buyers include Iguatemi, a shopping mall owner and operator, and four investment funds.

According to the memorandum of understanding, 70% of the R$2.5 billion will be paid upfront, with the remaining 30% split into two annual installments.

The announcement was made via a memorandum issued by Iguatemi, revealing the deal involves both Iguatemi and the BB Premium Malls fund (BBIG11). Additionally, funds from Capitânia, XP Investimentos, and BTG Pactual are participating, though their identities have not been fully disclosed.

In another statement, BB Premium Malls confirmed that BBIG11 will contribute R$800 million, securing ownership stakes of 16.5% in Shopping Pátio Higienópolis and 16.7% in Pátio Paulista.

When contacted by REsource, Iguatemi stated it would not provide further details beyond the public disclosures. BB Premium Malls, Capitânia, XP, and BTG did not respond by the time of publication.

Shopping Mall Exit?

Photos: Disclosure

In October, as previously reported by REsource, Iguatemi had already explored acquiring these assets from Brookfield. Simultaneously, Brookfield has been ramping up its investments in the multifamily sector.

According to REsource’s findings, the company, led by Roberto Perroni, is initiating a divestment process for its retail-oriented assets. Its new focus will shift to multifamily properties, alongside its existing portfolios in office and industrial properties.

This move underscores the growing prominence of the multifamily sector in Brazil. Data from SiiLA’s Market Analytics reveals that the segment’s occupancy rate reached 75.7% in Q3, up 2 percentage points from the previous quarter.

When contacted, Brookfield did not confirm the shift in its investment strategy.

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