Hedge Strikes Partnership and Sells Part of Jardim Sul Shopping to Ancar

Hedge’s shopping mall real estate investment fund (HGBS11) announced the sale of a 10% stake in Jardim Sul Shopping, in São Paulo, for R$ 63 million to Ancar Ivanhoe. The deal represents a cap rate of 7.7%, based on recent operating results, and a price 5.9% above the latest appraisal.

The capital gain amounted to approximately R$ 3.6 million, or R$ 0.03 per share, which will be reflected in September’s results.

According to the fund, the sale is aligned with its strategy of consolidating the portfolio in assets with greater relevance and liquidity. In July 2023, HGBS11 had already acquired a 40% stake in the same property, increasing its ownership in the asset. In 2024, the FII added another 50% stake.

In its statement, Hedge noted that Ancar went through a “thorough process to find a new partner that, in addition to taking over management of the asset, would also become a co-owner of the property.”

The immediate impact will also be felt in NAV: the revaluation of the remaining stake in the mall is expected to increase the fund’s net asset value per share by 1%.

With 77.6% of its portfolio allocated to properties, HGBS11 holds interests in 20 shopping centers across Brazil, including Parque Dom Pedro, West Plaza, Mooca Plaza, Boulevard BH, Vila Lobos, and Floripa Shopping. The fund’s main operating partners are Allos (31%), AD Shopping (21%), and Ancar Ivanhoe (17%).