IGUATEMI ACQUIRES 50% OF GALLERIA MALL AND APPROVES THE TRANSACTION
São Paulo, November 13, 2013 - Iguatemi Empresa de Shopping Centers S.A. ("Iguatemi") [Bovespa: IGTA3], one of the largest full-service companies in the Brazilian shopping mall sector, in addition to the Press Release of September 27, 2013, announces that the acquisition of 30% of Galleria Mall was approved by CADE, the brazilian antitrust authority, and that acquired the remaining 20% held by Anhumas.
Iguatemi announces that it has acquired the remaining 20% of the Galleria Mall from its partner Anhumas, under the same conditions previously established in September 20, 2013, when it was announced the purchase of the 30%. The transaction was approved by CADE, Brazil´s antitrust authority, and Iguatemi now owns 100% of the Galleria Mall and its adjacent plot of land.
Acquisition - May/2007 Expansion - Sep/2012
Galleria Mall valuation was at R$ 278.7 million and will generate net operational income (NOI) of R$ 23.6 million in
2013. The implicit multiple of total transaction was 11.9x 2013E NOI.
It is important to remember that in 2012, the Galleria went through an expansion adding additional 22.5% of GLA
which is still in its second year of maturation.
The acquisition further strengthens Iguatemi's strategy of increasing its participation in the malls in which it already has interests, thus both increasing revenues and diluting expenses. The adjacent plot of land will allow densifying the environment around the mall, and unlocking the possibility of future expansions.
The transaction also strengthens Iguatemi´s presence in the city of Campinas, one of the principal consumer markets in São Paulo State and its third largest economy - with per capita GDP of 34,000¹.
Total Sales - R$
161 188 213
2006 2008 2009 2010 2011 2013E
Gross Revenue -
5 9 10
2006 2008 2009 2010 2011 2013E
The Galleria Mall
The Galleria Mall (Shopping Center Galleria), in the city of Campinas, in the interior of São Paulo State, has 1,996 parking spaces and 33,236m2 of gross leasable area (GLA), on 3 floors, in 192 stores. It is built to a sophisticated plan, with a large central area open to the sky and an innovative landscaping treatment: the internal garden has more than 1,500m².
It was opened in October 1992, and Iguatemi bought a 50% share in May 2007. Since the acquisition Iguatemi has completely reshaped it. In 2012 Iguatemi expanded it by 7,500 m2, improving the mix and adding new features.
Since the acquisition by Iguatemi the sales of the Galleria mall have grown at an average annual rate (CAGR) of
24.1%, and its revenue has grown at 29.4% per year - as a result of the improvement in the mix and the mall's
facilities and equipment.
In September, 20, 2013, Iguatemi signed a contract for acquiring 30% of the Galleria Mall and its adjacent plot of land. The transaction was approved by CADE, Brazil´s antitrust authority, when Iguatemi has acquired the
remaining 20% of that Mall. Iguatemi currently holds an 100% stake in the Galleria Mall.
About Iguatemi Empresa de Shopping Centers S.A.
Iguatemi Empresa de Shopping Centers S.A. ("Iguatemi") is one of the largest full-service companies in the Brazilian shopping mall
Its activities cover the whole range of the business, from conception, through planning, to development and management of regional
shopping malls, and also mixed-use real estate complexes including developments such as office towers.
Iguatemi has equity interests in 14 shopping malls, 1 outlet and 3 office towers, with total GLA of 556 thousand sqm
- in which its total owned GLA is 347 thousand sqm
Iguatemi operates in the management of 14 of its malls, and the Pátio Higienópolis Mall in São Paulo. It also currently has three greenfield shopping mall projects, 3 expansions of existing
malls, and 1 office tower, in development.
Its shares are traded on the Novo Mercado of the São Paulo Stock
Exchange (BM&FBovespa), under the ticker IGTA3.
INVESTOR RELATIONS CONTACTS:
Vice-President for Finance, Investor Relations Director
Chief Strategic Planning Officer, Investment Relations Officer
Investor Relations Coordinator
Tel.: (11) 3137-6877 / 6872
Email: [email protected]