JHSF Capital Acquires 33% Stake in Shopping Cidade Jardim for R$ 560 Million
- Transaction is under CADE's approval.
- Shopping Cidade Jardim is a Class A development according to data from the GROCS platform.
JHSF, a leading real estate company in Brazil, has made a significant acquisition, purchasing a 33% stake in Shopping Cidade Jardim from Gazit for R$ 560 million. This strategic transaction was executed through JHSF Capital, a subsidiary of JHSF specialized in asset management. With this move, JHSF strengthens its ownership position, with JHSF Participações retaining a 50,01% stake, JHSF Capital holding 33%, and the remaining 16,99% owned by the fund XPML11 - XP Malls FII.
Shopping Cidade Jardim, recognized as a Class A development according to SiiLA's GROCS platform, is renowned for its prestigious collection of high-end luxury stores, featuring esteemed brands such as Chanel, Gucci, Hermes, Louis Vuitton, Prada, and more, catering to affluent clientele. Moreover, the commercial center is part of a larger complex that encompasses both corporate and residential towers, solidifying its reputation as a versatile and multi-purpose destination.
JHSF Capital, a recently established company within the group, has announced its acquisition, which is currently pending approval from CADE. CADE is an executive branch body of the Brazilian government responsible for investigating and making decisions on competition issues, as well as fostering and promoting a culture of competition in Brazil.
As part of this acquisition, JHSF Capital will spearhead the development of investment vehicles to acquire shares of the Cidade Jardim Real Estate Investment Fund. Augusto Martins, CEO of the company, expresses his enthusiasm for the transaction, stating, "This significant deal positions JHSF Capital as a major player in the industry, orchestrating a venture of considerable magnitude. Cidade Jardim, an iconic development, has recently celebrated 15 years of consistent growth and international recognition. We eagerly anticipate the exciting opportunities that lie ahead."
Leveraging the expertise of JHSF in project development and real estate products, JHSF Capital's real estate funds will be made accessible to both JHSF clients and other investors seeking attractive investment opportunities in the market.
With this acquisition, JHSF consolidates its position in the commercial real estate market, further expanding its already impressive portfolio that comprises seven operational shopping centers. In addition to Shopping Cidade Jardim in São Paulo, JHSF owns other prominent properties including Catarina Fashion Outlet in São Roque, Shops Jardins and Shops Faria Lima in São Paulo, Shopping Bela Vista in Salvador, Shopping Ponta Negra in Manaus, and SHOPS Jardins located in the Jardins neighborhood of São Paulo.
Gazit Malls fund for sale
In a statement sent to our REsource portal, Gazit emphasized that “the company has an extensive 15-year presence in Brazil and express a strong belief in the favorable and optimistic investment landscape the country offers. As part of its strategic approach to business expansion, Gazit is currently engaged in the process of selling a minority stake in its real estate fund, Gazit Malls, with the aim of forging partnerships with local entities to further develop its operations in Brazil.”
Recently, Gazit Brasil announced its partnership with Bradesco BBI to facilitate the sale of stakes in five prominent shopping centers that are part of Gazit Malls Fund's portfolio in Brazil. This offering encompasses Morumbi Town, Shopping Light, and Mais Shopping, all located in São Paulo, as well as Internacional Shopping in Guarulhos and Prado Boulevard in Campinas. While the real estate fund holds full ownership of these assets, it holds an 80% stake in Morumbi Town.
Additionally, Gazit holds a minority stake in Shopping Eldorado. Plus Top Center Shopping, on Paulista avenue, is also a part of the company's portfolio. Both properties are integrated into complexes featuring corporate towers in São Paulo's central business district (CBD) areas.
