Gazit-Globe (NYSE, TSX, TASE: GZT) has announced that its wholly owned subsidiary Gazit Brasil Ltda. is buying 100 per cent ownership of Mais Shopping in Sao Paulo, Brazil, for US$ 72 million (NIS 280 million). The acquisition will be financed by the company.
Mais Shopping was owned until now by a Credit Suisse fund, a real estate company and a private investor, which together held 60 per cent of the asset, while the remaining 40 per cent was held by Banco Bradesco, Brazil’s second largest private bank.
Mais Shopping is an urban shopping center located in a rapidly growing neighborhood in southern Sao Paulo. Situated at the intersection of a major bus terminal and a metro station, the retail center is close to regional government offices, universities, a hospital and the headquarters of several multinationals (including IBM and Santander) and is within walking distance of a train station. Approximately 1 million people pass through the area on a daily basis.
Built in 2010, Mais Shopping currently has 238 stores with a total gross leasable area (GLA) of approximately 13,300 sq.m. plus 770 parking spaces, comprising a total of approximately 18 dunams (18,000 sq.m.) of land. In addition, the transaction includes 1.15 dunams (1,150 sq.m.) of adjacent land available for future expansion.
The city of Sao Paulo, Brazil’s financial capital, is the home of the Brazilian stock exchange BM&FBovespa, one of the world’s largest exchanges in terms of market value. The State of Sao Paulo, the country’s richest and most populous state generates 40% (about US$750 billion) of Brazil’s GDP and its residents had a per-capita income of US$ 21,625 in 2014. With a land area about the size of England and 42 million inhabitants, the state offers potential consumption of US$390 billion.
Mia Stark, Gazit Brasil CEO, says: "The acquisition of Mais Shopping strengthens our position in the city of Sao Paulo, the business capital of Brazil and the nation's wealthiest and most populous city with approximately 12 million people with a high GDP." Upon the completion of the deal, Gazit Brasil will own seven shopping centers with a total GLA of 90,000 sq.m. and a combined worth of more than NIS 1.4 billion (more than 1 billion Brazilian reals).
This transaction joins three other major acquisitions made recently by the Gazit Group: its subsidiary Atrium European Real Estate bought the Palac shopping center in Pardubice, Czech Republic, from Africa-Israel Europe for 83 million euros and 75% ownership of Arkady Pankrac shopping center in Prague for 162 million euros; and its subsidiary in the Nordic states, Citycon Oyj, acquired a shopping center in the greater Copenhagen area for 75 million euros. The total value of the three acquisitions is 320 million euros.
Gazit-Globe is one of the world’s largest owners, developers and operators of predominantly supermarket-anchored shopping centers across the globe, focusing primarily on growing urban areas. Gazit-Globe is headed by major shareholder, Chaim Katzman, and is listed on the Tel Aviv Stock Exchange (TASE: GZT), where it is included in the TA-25 and Real-Estate 15 indices; the New York Stock Exchange (NYSE: GZT); and the Toronto Stock Exchange (TSX: GZT). The Gazit Group owns and operates 540 properties in more than 20 countries, with a gross leasable area of approximately 6.4 million square meters and a total value of approximately NIS 75 billion. More than 5 million people a day visit the group’s retail centers throughout the world.
During the first nine months of 2014, Gazit-Globe sold NIS 2.4 billion worth of assets worldwide, mainly in North America, and bought assets worth a total of NIS 2.7 billion, mainly in Europe and Brazil.