IGUATEMI SELLS STAKE IN ITS
IGUATEMI ESPLANADA GREENFIELD PROJECT IN SOROCABA
São Paulo, January 14, 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 the sale of a stake in its greenfield project Shopping Iguatemi Esplanada, in the city of Sorocaba / Votorantim, in the interior of São Paulo State.
About the sale
On December 21, 2012, Iguatemi sold an equity interest of 34.3% in Shopping Iguatemi Esplanada, its greenfield project in the city of Sorocaba / Votorantim. The sale will result in Iguatemi owning 65.7% of the equity in Shopping Iguatemi Esplanada. The transaction generates operational profit of R$ 13.6 million, that will be reported in the 4Q12 results.
The interest was sold to Previ, which is Iguatemi's main partner in Shopping Center Esplanada, in which Previ holds a 34.3% interest. This sale is an essential step in maintaining the alignment between the controlling shareholders, and makes it possible for the two projects to be managed as if they were a single complex.
Following this acquisition, Previ and Iguatemi jointly own an aggregate 72.3% of Shopping
Center Esplanada, and 100% of Shopping Iguatemi Esplanada.
The new mall under construction includes walkways connecting the two malls, creating even greater synergy between the two enterprises, which will have aggregate GLA of 67,200 sqm.
The complex has a further 31,000 sqm of owned stores (Carrefour, Riachuelo and Renner), which give the project enhanced commercial strength. In total, the new greenfield project and these proprietors stores will make the project one of the largest retail complexes in Brazil, with 98,200 sqm of selling area, and the biggest and most important retail complex of the city of Sorocaba / Votorantim and its surrounding area.
Status of the project
The new mall is planned to open in October 2013. It will have 39,500 sqm, and is expected to generate an NOI of R$ 47.6 million in the first year of trading.
On December 31, 2012, 80% of the contracts had already been leased of the Iguatemi Esplanada Mall. These include differentiated brands for the region, such as Schutz, Le Lis Blanc, John John, Track & Field, MAC, Calvin Klein, Fast Shop, Vivara, Swarovski, Outback, Starbucks, Livraria Saraiva, Etna and Cinepolis.
Building works for the new mall are well advanced. Earthmoving and foundations have been completed and the concrete structure is under construction.
Sorocaba is one of the main cities of the interior of São Paulo State, and an important center in the region. Its annual per capita income in 2010 was R$ 27,500 (Source: IBGE).
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 shopping mall sector in Brazil. Its activities cover conception, planning, development and administration of regional shopping malls and mixed-use real estate complexes, including office towers.
Iguatemi has equity holdings in 13 shopping malls, with total GLA of 491,000m2; its owned GLA (i.e. the share represented by its proportional equity interests in these malls), totals 282,000m2. It operates in the management of 12 of its malls.
Currently it has four greenfield shopping mall projects, and 3
expansions of existing malls, in progress. Iguatemi's 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
Email: [email protected]