Market Place Beyond the Mall: Get to Know Iguatemi S.A.'s Bet on the Modernization of One of São Paulo's Most Iconic Malls

In addition to the shopping center, the complex will feature offices, residential areas, and even a beach tennis court

Guido Barbosa de Oliveira, Vice President of Finance and Investor Relations Director of Iguatemi S.A.

By: SiiLA News

02/15/2024

Last week, Iguatemi S.A. unveiled an ambitious new venture: the revitalization of Shopping Market Place, situated in the Chucri Zaidan region. This comprehensive project encompasses a complete retrofit of the shopping mall complex, alongside the creation of innovative spaces for offices and residences, heralding a transformative milestone for the area, as proclaimed by the company.

The traditional concept of shopping mall has undergone a profound evolution, transitioning from mere consumer hubs to multifaceted destinations offering a diverse array of services and entertainment options.

Read more: Multiplan's Strategy of Services and Entertainment Fuels Sales Growth in its Malls

Scheduled to commence in February 2024, construction will progress through four distinct phases to overhaul the Market Place Complex. The initial stage will concentrate on enhancing the office spaces, followed by the development of residential areas. Subsequently, attention will turn to the refurbishment of the shopping center and existing corporate towers, constituting the third and fourth phases respectively.

Presently, the Chucri Zaidan region reports a 27.19% vacancy rate for Class A+, A, and B offices, as per data monitored by SiiLA's Market Analytics platform. Notably, the combined vacancy rate for the two towers integrated within Market Place stands at 14.82%, as indicated by SiiLA. In 2023, these properties witnessed a net absorption of 2,558 m², with esteemed tenants such as Sandoz and Tellescom making notable ingressions.

Offices

Analysis of vacancy rates for Market Place Towers I and II and the Chucri Zaidan region for Class A+ and A developments.

The private area of the new commercial units will be 5,700 square meters, including meeting rooms, an auditorium with a foyer, and a rooftop with a restaurant integrated into an Open Mall.

The first phase of this stage is scheduled to begin on February 29, 2024, with an area of 1,652 square meters on the first floor being closed for the start of construction. It is expected that this area will be completed by the second half of 2026.

Residential

The residential tower of the complex will focus on high standards, with a private area of 11,440 square meters and over 100 units ranging from 50 to 300 square meters. With facilities such as a pool, gym, gourmet lounge, spa, and pet area, the development will be marketed in the multifamily format.

This will be Iguatemi S.A.'s first multifamily development, a growing business model in the country, where high-end apartments are rented out, and tenants have access to various services, although the company has not disclosed many details about this.

Retrofit

Tower I and Tower II

The last two stages of the project will consist of the retrofit of the facade and the existing towers, Tower I and II. The shopping mall will receive a new architectural design, including exterior revitalization, requalification of the food court, creation of new restaurants, and tennis and beach tennis courts.

Just like the main building, the two corporate towers of the complex will undergo an exterior renewal. The idea is to introduce contemporary architecture that will visually contribute to the Chucri Zaidan skyline, stats Iguatemi.

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