Strategy

Our path to success:

We believe that by implementing our main strategies, we will improve our operational development, maximize returns for our shareholders and generate competitive advantages, thereby fueling our growth.Our main strategies are:

Constantly seeking attractive growth opportunities through acquisitions:

As mentioned before, we believe there is still considerable room to consolidate the sector through acquisitions.The Brazilian mall market is highly fragmented, with the top three players accounting for only 22.2% of total gross leasable area (GLA), which is relatively low compared with the United States, where the figure is 56.2% (2010 numbers).In keeping with our consolidation strategy, we acquired four new malls in 2011 and increased our interest in three others. These transactions absorbed investments of R$1.4 billion and represent net operating income (NOI) of R$450.9 million, 21.5% higher than the originally projected figure of R$317.2 million.

Developing new shopping malls and expandingour existing malls:

The Brazilian shopping mall sector is underdeveloped in terms of number of malls, total GLA and GLA per inhabitant when compared to other countries, such as the United States and Canada.We therefore believe there is still substantial room for new malls and expansions of existing ones.We opened two malls in 2011, Mooca Plaza Shopping and Via Brasil, and we carried out two expansions to Tamboré and Shopping Campo Grande.All of the projects were completed on time and within budget, underlining the Company’s commitment to its clients and investors.

Continually extracting value from the malls in our portfolio:

In addition to the sales growth and consumption boom that Brazil has been experiencing in recent years, we have always sought to extract the maximum amount of value from the malls in our portfolio. With an increasingly qualified team and an expanding portfolio, we have been able to achieve economies of scale and optimize low performing areas with projects seeking higher profitability.

Focusing on improving efficiency:

The best type of growth is accompanied by higher efficiency.We are always seeking means of improving our processes, by implementing the highest standards of operational, financial and personnel-related excellence, through the creation of a Shared Service Center (CSC), responsible for all administrative, financial, accounting, IT and other services for our offices and malls, and through the adoption of an integrated management system (Oracle Business). Thanks to improved processes, scale gains and increased bargaining power through the centralization of purchases and the outsourcing of cleaning, security and other services, we have been able to increase the focus on our core activities.