Portfolio Swap? HGSB11 and PMLL11 Stir the Shopping Mall Market This Week

Two of the main shopping center funds started the week by shaking up the board. Last Wednesday (3), HGBS11 (Hedge) and PMLL11 (Pátria) announced, through material facts, the signing of a Memorandum of Understanding (MOU) structuring a strategic exchange of stakes in two key assets: Boulevard Shopping Bauru and Suzano Shopping.

Under the agreement, HGBS11 will acquire the 35% stake in Boulevard Shopping Bauru held by a PMLL11 SPE for R$ 91.4 million. If the transaction moves to completion, the Hedge fund will consolidate 100% ownership of the property. The stabilized cap rate was 6.8%.

On the other hand, PMLL11 will acquire a 15% stake in Suzano Shopping, currently part of HGBS11’s portfolio, for R$ 51.1 million. Once completed, the Pátria fund will increase its stake to 40%, while HGBS11 exits the asset entirely. The cap rate for this transaction is 7.22%.

Upon closing both transactions, PMLL11 projects a cash profit of approximately R$ 0.48 per share, resulting from an estimated net inflow of R$ 40.3 million. According to Pátria, the agreed sale price of the Bauru stake represents a gain of roughly 8% on invested capital, with a nominal IRR of around 13% per year.