Iguatemi Acquires Additional Stake in Shopping Iguatemi São Paulo for R$25 Million at an 11.2% CAP Rate

The acquisition of a 0.8% stake in Iguatemi São Paulo is part of the company’s strategic consolidation in the shopping mall market

The property, located on prestigious Faria Lima Avenue, is famed for its upscale shopping offerings and is noted as São Paulo's first shopping mall

Guido Barbosa, Chief Financial Officer and Investor Relations Director at Iguatemi S.A.

By: SiiLA News

07/24/2024

This week, Iguatemi S.A. (IGTI11) disclosed through a statement that it has purchased a 0.8% stake in one of its flagship assets, Iguatemi São Paulo, for R$25 million.

This fraction, representing 394 m² of Gross Leasable Area (GLA), was acquired at a Capitalization Rate (CAP Rate) of 11.2%, according to data from SiiLA's GROCS platform. With this purchase, Iguatemi now holds a 59.57% stake in the property.

This move is in line with the company's objective to bolster its presence in the market's assets. Notably, on July 8, Iguatemi S.A., along with BB Asset, expanded its portfolio by purchasing a 16.6% interest in the Rio Sul Shopping Center for R$41 million.

Portfolio

Iguatemi São Paulo, strategically located on Avenida Faria Lima in São Paulo.

Opened in 1966 and nestled between Av. Rebouças and Av. Cidade Jardim, Iguatemi São Paulo spans a GLA of 49,000 m². The mall attracts an affluent demographic with high-end retailers such as Cartier, Hermès, Louis Vuitton, Gucci, Prada, Chanel, Zegna, Golden Goose, Boss, Panerai, Rolex, and more.

Iguatemi's portfolio includes 14 shopping centers, two outlets, and three commercial towers. As of the first quarter of 2024, the company reported total sales of R$4.3 billion and an occupancy rate of 94.1%. Its net revenue stood at R$304.1 million.

Key assets include JK Iguatemi, Market Place, and Pátio Higienópolis, alongside full ownership of two Market Place Towers and stakes in Torre Iguatemi Porto Alegre and Sky Galleria.

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