Last Friday (29), the signing of a Memorandum of Understanding (MOU) between XP Vista Asset Management and Riza Real Estate was announced for the creation of a new real estate investment fund (REIT). The new vehicle will be managed by Riza and will acquire stakes in nine shopping centers from XP Malls’ portfolio.

List of assets involved:

1.     45% of Tietê Plaza Shopping (São Paulo/SP)

2.     15% of Partage Santana Shopping (São Paulo/SP)

3.     25% of Campinas Shopping (Campinas/SP)

4.     20% of Grand Plaza Shopping (Santo André/SP)

5.     17.5% of Caxias Shopping (Duque de Caxias/RJ)

6.     100% of Shopping Downtown (Rio de Janeiro/RJ)

7.     40% of Shopping Metropolitano Barra (Rio de Janeiro/RJ)

8.     39.99% of Shopping Ponta Negra (Manaus/AM)

9.     14.31% of Shopping Bela Vista (Salvador/BA)

The transaction amounts to R$ 1.6 billion, with 68% of the payment upfront and 32% deferred over up to 5 years. According to the material fact, it is estimated that XP will receive around R$ 1 billion net and record a capital gain of R$ 278 million. The profit distribution to shareholders could reach up to R$ 4.90 per share.

To conclude the deal, the assets will undergo due diligence — a legal, financial, and operational review of the shopping centers to ensure compliance. In addition, Riza must raise capital and structure the new fund within a 90-day period.