Both are located in the city of São Paulo; Iguatemi seeks to acquire Brookfield’s stake in the projects
Iguatemi signed an exclusivity agreement to purchase Brookfield’s shares in the Pátio Paulista and Pátio Higienópolis shopping malls, both located in the city of São Paulo. According to the newspaper Economic ValueIguatemi has 30 days to present a binding offer.
Iguatemi is a partner of Pátio Higienópolis. It has a stake of 11.5%. He is also the mall administrator. Brookfield has a 55.9% share in Pátio Paulista and 50.1% in Higienópolis.
According to the publication, Iguatemi, Allos, Syn and an individual investor were competing for Brookfield’s assets. Iguatemi would have made the best offer, offering a cap rate 7% for Pátio Paulista and 6.7% for Higienópolis. Cap rate is short for capitalization rate (capitalization rate). It is the value that a given property returns in capital in relation to the amount invested.
Brookfield’s share of the assets is valued at R$2.5 billion to R$3 billion. According to the Economic ValueBradesco BBI and BTG Pactual advise the company on the sale.
Iguatemi, according to the newspaper The State of São Paulois in business in partnership with the real estate investment BB Premium Malls. Together with the fund, Iguatemi acquired assets in Rio Sul, in Rio de Janeiro. The mall was sold by Brookfield.
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