Buyer of Shopping Boulevard Vila Velha Faces Payment Issues, Requests Contract Renegotiation

Buyer cites operational challenges that hindered the structuring of a public offering, making it impossible to raise the necessary funds

Felipe Rodrigues, founding partner of Macam Asset

By: SiiLA News

01/06/2025

LA Shopping Centers S.A., a company linked to the Macam Shopping Real Estate Investment Fund (FII Macam), has requested a renegotiation of payment terms related to its purchase of a 25% stake in Boulevard Shopping Vila Velha, one of Espírito Santo’s largest shopping malls.

The transaction, announced in 2023 by FII Legatus Shoppings (LASC11), included a remaining balance of R$ 36.9 million, adjusted by CDI, due by December 23, 2024. However, a recent disclosure revealed that "unforeseen operational challenges that impacted the structuring of a public offering of quotas made it impossible to raise the required funds within the stipulated timeframe."

In response, LA Shopping Centers S.A. proposed a contractual amendment to adjust the financial flow and ensure compliance with obligations. The suggested terms include extending the final deadline to June 30, 2025, a partial amortization of R$ 10 million by January 31, 2025, and monthly interest payments until the new due date.

The parties involved had not issued statements by the time of this report's publication.

Impactos no mercado

Disclosure

A recent report by REsource highlighted the challenges facing real estate investment funds (FIIs) in Brazil’s current economic climate. Experts note that the high SELIC base rate and elevated capital costs have deterred investors from this asset class, pushing them toward other financial market opportunities.

Read More: Falling Real Estate Investment Funds Highlight Challenges in the Investment Market in Brazil

Inaugurated in 2012, Boulevard Shopping Vila Velha is a flagship mall in Espírito Santo, boasting 47,802 m² of gross leasable area and over 115 stores, including 12 anchor tenants, 6 big-box retailers, and 6 cinemas. According to the shopping mall’s official page, the property attracts a monthly footfall of 600,000 visitors.

BTG Pactual, the administrator of LASC11, stated, "The Administrator and Manager will analyze the situation and take all appropriate measures, communicating updates to the market."

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