XPML11 acquires stakes in five shopping malls for approximately R$608.7 million

Last Friday (13), at the end of the day, the real estate investment fund XP Malls (XPML11) announced, through a material fact, the completion of the acquisition of stakes in five shopping centers for R$608.7 million.

Of the total assets involved in the transaction, four belonged to companies from the Iguatemi group and one to the real estate fund BB Premium Malls (BBIG11).

The stakes sold by the Iguatemi group include 9% of Iguatemi Alphaville, 23.96% of Iguatemi Ribeirão Preto, 18% of Iguatemi São José do Rio Preto, and 7% of Shopping Praia de Belas, in Porto Alegre. The sale of these assets generated R$372 million for the company.

BB Premium Malls, in turn, sold a 9% stake in Shopping Pátio Higienópolis, in São Paulo, for R$236.7 million.

The transaction was completed after meeting the usual precedent conditions for this type of deal, including approval by Brazil’s Administrative Council for Economic Defense (CADE) and the conclusion of the due diligence process.

The payment was structured in three stages. An initial installment of R$437.9 million was settled immediately, partly in cash and partly through the subscription of XP Malls units by the sellers. The remaining amount will be paid in two future installments: R$60.8 million in 12 months and R$109.9 million within 24 months, both adjusted by the CDI rate.

The stabilized cap rate of the transaction, estimated by SiiLA’s research and data analytics team, is 6.18%.