Campinas Shopping
Campinas Shopping is located in the city of Campinas, in the state of São Paulo. Campinas is the third largest city in the state of São Paulo, with a population of over 1 million inhabitants. The mall has approximately 30,322 m² of GLA and has more than 1.1 million visitors per month.
The acquisition of Campinas Shopping, which was announced in 2008 and completed in 2009, and it had a real unleveraged IRR of 16.1%. The mall has been contributing to the Company’s NOI since March 2009.
During the last nine months of 2009, BRMALLS implemented certain measures to improve the mall's results including:
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Introduced paid parking on August 2009:
with this measure the mall increased its parking revenue, the second most important source of revenue in a mall, and improved the parking efficiency;
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More rigorous control of late payments : this measure decreased the late payment rate from 9.2% in March 2009 to 1.3% by year-end;
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Management turnover : we replaced part of the original mall staff with a team of BRMALLS’ professionals, focused on results and efficiency;
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Strong leasing efforts : our commercial team’s work led to the signing of several very profitable contracts, improving the mall’s store mix by bringing key tenants and a cinema, and increasing its occupancy rate by 360 bps to 99.1% at the end of 2009;
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Audit efforts : the mall management focused on auditing tenant sales for the last nine months, which in turn increased the percentage rent revenue for the year.
The leasing, auditing and charging efforts were very successful in increasing the mall’s revenues in 2009. Together with an experienced staff they were responsible for the 35% NOI increase.
Ilha Plaza
Ilha Plaza is the only mall in Ilha do Governador serving the entire island, which has a population of more than 200,000 inhabitants, predominantly middle class, whose spending power is among the highest on Rio’s north side.
Since August 2007, when BRMALLS took over its management, we identified a lack of entertainment/leisure options and services in the mall’s mix and have been focusing on improving these aspects.
Our main efforts towards improving the shopping mall included:
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Infrastructure investments :
renovation work done in lighting, landscape and mall area; new water deposit and creation of a “Customer Service Center”;
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Adjustment of the store mix with capturing high leasing spreads : since we took over, we closed 58 new leasing contracts (6,700 m² of GLA, or 30% of the mall), strengthening the mix by offering more food and clothing stores. The new leases have proved essential in enhancing the anchor store framework and the overall mix with new renowned brands;
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Reduction of vacancy : when we took over the mall in August 2007, the vacancy rate was 13%; by the end of 2009, it had fallen to 5%.
All these measures have resulted in improvements in several aspects of the mall, and are reflected in the 150% increase in the mall’s NOI as compared to 2006.