Increasingly expand existing shopping malls and develop new shopping malls

The Brazilian shopping mall sector is underdeveloped in terms of quantity of malls, total gross leasable area and gross leasable area per capita when compared to other countries. Therefore, there is still vast opportunity for new malls and expansions. Our strategically diversified portfolio of shopping malls on both geographic location and income segment and our management and operating experiences are very important competitive advantages for our growth strategy through new developments. Our nationwide presence allows us to closely monitor the developments in different regions, knowing the right time and opportunities to invest in expansions or new malls.

Constantly searching for attractive growth opportunities via acquisitions

We believe that there is still room for the sector to grow through consolidation, since the Brazilian mall market is very fragmented, with the eight top players accounting for only 40% of the total gross leasable area. As a result, one of BRMALLS` main strategies is also to grow through acquisitions, increasing our leading market share in the sector. Our national presence and close relationship with other mall owners are essential for identifying acquisition opportunities.

Extract value continuously

In the last few years, Brazilian retail sales have grown significantly mainly due to the growth of the middle class and its purchasing power. We believe that we can benefit from this trend by finding new ways to attract new customers to our malls and consequently increasing the number of visitors and sales. In addition, we are always trying to diversify our sources of revenue, such as charging for parking in certain malls we do not currently charge, renting mall common areas for special events and renting out kiosks.

Focus on improving efficiency

Better than growing is doing it efficiently. We look for ways to improve our processes, through the implementation of excellence standards in our operations, finances and personnel. These standards were reached through the creation of a Shared Services Center (CSC), responsible for all administrative, financial, accounting, IT and other services for our offices and our shopping malls, and through the adoption of an integrated management system (Oracle Business Suite) in the company. We also centralized mall purchases,in order to gain scale and procurement power, and outsourced facilities management to specialists. Given that, we have been able to focus more on our core activities and management improvements.