BREAKING: Gazit sells a segment in Cidade Jardim for R$560 million

Gazit Brasil – the mall manager of Israel’s J-City Group – has sold its stake in Shopping Cidade Jardim, the first step in a broader plan to sell the assets, sources familiar with the matter told Xinhua. Brazil Journal.

Gazette sold the 33 percent it owned in the mall for R$560 million, at a 30 percent discount to book value, according to a source.

The remaining capital is split between JHSF which controls 51% and real estate fund XP Malls which owns the remaining 16%.

Selling means a rate max From 8.5% to 9%, higher than recent transactions in the mall sector.

“It is a nice hat For the buyer, considering it’s a mall with NOI [net operating income] harsh. Cidade Jardim is a trading center with low traffic but very high conversions… It is a well-established, stable and dominant asset. “

Gazit’s share was in the Cidade Jardim real estate fund, and the deal included the sale of 100% of the shares in this fund.

JHSF Capital, the management and financial services arm of JHSF created in November, advised Gazette.

According to the source, the buyers were real estate funds and a few individuals Very high net worth. XP Malls is one of the most likely buyers, having Follow 300 million reais on the street, can Use part of this amount to increase its involvement in Cidade Jardim.

Upon completion of the purchase — which needs approval from CADE — management of the Cidade Jardim real estate fund should be transferred to JHSF Capital, which will open the asset management business, according to the sources.

The sale began in January this year and is part of a broader move by Gazette Brasil.

Last week, the company confirmed – after an article on the radio – that it had hired Bradesco BBI to sell a stake in the five shopping centers it controls in Brazil.

Gazit owns Morumbi City, Shopping Light, Top Center, Mais Shopping, and Internacional Shopping de Guarulhos, all in São Paulo, as well as Prado Street in Campinas.

It also has a minority stake in Shopping Eldorado.

All of these assets are inside a real estate fund, Gazette Malls, and the company’s idea is to sell a minority stake in the fund.

The decision to sell comes amid a strong consolidation in the mall sector – exemplified by the recent merger between BRMalls and Alliance Sonae – which has left players Small and medium businesses like Gazette are in a more vulnerable position.

Peter Arbex