PRESS RELEASE

IGUATEMI ANNOUNCES A SWAP AGREEMENT FOR A PLOT OF LAND FOR CONSTRUCTION OF A PREMIUM OUTLET IN MINAS GERAIS

São Paulo, December, 23th, 2013 - Iguatemi Empresa de Shopping Centers S.A. ("Iguatemi") [Bovespa: IGTA3], one of the largest full service companies in the Brazilian shopping mall sector, announces a swap agreement for a plot of land in the metropolitan region of Belo Horizonte - MG, for the construction of a Premium Outlet.

About the Premium Outlet

On December 20th, 2013, Iguatemi signed a swap agreement for a plot of land of 200,000 m2 for the construction of a Premium
Outlet in Nova Lima, metropolitan region of Belo Horizonte.
The Premium Outlet will have 30,300 sqm of GLA, with the following breakdown: Iguatemi with 54.0% of the project, Construtora São José with 36.0% and the remaining 10,0% held by other partners. The total investment in the Outlet will be of R$ 140.7 million and will have an expected IRR of 16.2%.The opening is scheduled for Oct/2016.
This project marks the entry of Iguatemi in the state of Minas Gerais, one of the most important states in the Southeast region of Brazil, with a GDP of R$ 386.1 billion and a per capita income of about R$ 20,000, according to data IBGE (2010). The outlet will have a influence zone of over 100 km of radius, reaching an estimated population of over 6.4 million inhabitants of which
35% belong to classes A and B.
With an unique location, it is only 22 km away from Belo Horizonte - MG, and on the route to Rio de Janeiro, Ouro Preto and
Inhotim, touristic destinations that attract thousands of tourists every year.

Technical Information

Opening Date

Oct/2016

Total GLA

30,300 sqm

Total Capex

R$ 140.7 mm

Estimated IRR for the Project (real and unlevered)

16.2%

1st year NOI

R$ 17.5 million

Iguatemi Stake

54.0%

Management

Iguatemi

About the Strategy

Iguatemi has an intrinsic competitive advantage in operating premium outlets in Brasil, due to: (i) its relationship with leading
Brazilian and international brands; (ii) positioning of the Iguatemi brand; and (iii) its strong regional presence in the densest

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Press Release


cities of Brazil's South and Southeast regions, which have the highest concentrations of A and B income groups, and thus the highest propensity to value differentiated brands.
According to a study conducted by Jones Lang Lasalle, up from 50.0% of Brazilian consumers who frequent shopping malls in Brazil belong to classes A and B. For Premium outlets, consumption is almost exclusively directed to the A and B, publics who essentially seek good prices, but also the exclusivity of premium brands.
The concept of premium outlets is very ingrained in the Brazilian public with purchasing power, who often already consume differentiated premium brands in major outlets abroad, especially in tourist destinations in the USA. The main reason that takes these consumers to premium outlets is the pursuit of differentiated brands with lower prices.
This segment will be one of the growth drivers of Iguatemi in the coming years, maintaining the link with our final costumer.

About the Region

The city of Nova Lima integrates the Metropolitan Region of Belo Horizonte in the state of Minas Gerais. The fact that it borders the southern part of the city of Belo Horizonte, the richest region of the capital, has been attracting high-income residents to Nova Lima, who are settling in its many high-end luxury condos.

Press Release

A study released on April 29, 2010, revealed that Nova Lima is the number one city in quality of life in Minas

Gerais (HDI 2010: 0.813).

It serves as headquarters for several large national and international companies such as Fiat, Anglo-Gold Ashanti, Dom Cabral Foundation among others. In 1999, Alphaville Lagoa dos Ingleses was launched sparking an intense real estate development in the region, which should continue to flourish for decades to come.

About

Iguatemi Empresa de Shopping Centers S.A.

Iguatemi Empresa de Shopping Centers S.A. (Iguatemi) is one of the largest fall-service companies in the Brazilian shopping malls sector. Its activities cover conception, planning, development and management of regional shopping centers and mixed-use real estate complexes, including commercial tower blocks. It has interests in 15 shopping malls, one outlet and 3 office towers, with total GLA of more 613,000sqm, its owned GLA totaling 380,000sqm. It takes part in the management of 14 of its malls, its outlet and its tower blocks.

It also has 2 shopping malls, one outlet and one commercial tower in development, and 3 expansions in progress at its existing malls.

Iguatemi's shares are listed on the Novo Mercado of the São Paulo stock exchange (Bovespa) under the ticker IGTA3.

INVESTOR RELATIONS CONTACTS:

Cristina Betts

Vice-President for Finance, Investor Relations Director

Gunther Schrappe

Chief Strategic Planning Officer, Investment Relations Officer

Cecília Viriato

Investor Relations Coordinator

Bruno Carobrez

IR Analyst

Tel.: (11) 3137-6877 ri@iguatemi.com.br www.iguatemi.com.br

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