Expansions

Shopping Recife

On April 19, the Company opened a new expansion, developed and leased by BRMALLS. The expansion was inaugurated on the scheduled date, investments were in line with budget and 100% of the GLA was leased.

This project is expected to generate stabilized NOI of approximately R$4.8 million for the Company, increasing the importance of this mall, which is the largest in our portfolio in terms of total sales. The project’s real and unleveraged IRR is 29.7%.

This new expansion provides consumers with a pioneering store mix, comprising three anchor stores (LeBiscuit, Memove and Fast Shop), two megastores and 51 satellite stores, some of which are making their first appearance in the city and state, including Le Lis Noir, Sunglass Hut, Antonio Bernardo, Granado, MAC, Constança Basto, among others.

Center Shopping Uberlândia

Opened in April, 1992, Center Shopping Uberlândia is located in the largest inland city in Minas Gerais,which is also the fourth largest inland city in the country, according to IBGE. With a population of approximately 620 thousand inhabitants that grows at a rate of 3.4% per year and a GDP per capita of R$25.5 thousand, the city of Uberlândia is an important educational and industrial center.

Center Shopping Uberlândia currently has 294 stores, including 273 satellites and 13 anchors/ megastores, a movie theatre with 8 screens and more than 2,830 parking spaces. Moreover, the expansion added a total of 21 fast-food operations and 3 new restaurants, generating 1,984m² of GLA, establishing itself as a great gastronomic hub in the region. It's a multiuse complex involving shopping, leisure, business and lodging, with integrated access, constantly attracting qualified visitors.

We estimate this expansion to generate approximately R$2.0 million in stabilized NOI to BRMALLS. The real and unleveraged IRR for the project is 26.3%.

We acquired a 51% stake in Center Shopping Uberlândia in September 2010. After we implemented our management model in the mall, we exceeded projected NOI from the date of acquisition in 11.8% and after managing the mall for three years, BRMALLS expects to double the NOI at the end of 2012. One example of the measures we implemented to extract more value was the improvement in mall revenues. Center Shopping Uberlândia had a CAGR of 156.3% in its mall revenue comparing the first half of 2009 with the first half of 2012, increasing revenue from R$101.6 thousand to R$1.7 million.
 

Greenfield

Shopping Estação BH

We inaugurated Estação BH on May 24, 2012. The mall is strategically located in an important growth area in the city of Belo Horizonte at the confluence of three major thoroughfares, generating enormous numbers of visitors.

Estação BH is one of the first large-scale malls in the north side of Belo Horizonte and will be a reference for the region, with eight anchor stores and seven megastores, including Lojas Americanas, Dadalto, Livraria Leitura, Fast Shop, Polishop, Centauro, Ponto Frio, Casas Bahia, Renner, Riachuelo, Marisa, C&A and Leader. There are 175 satellite stores, among which Adidas, Chilli Beans, Havaianas, Hering, Drogaria Araújo, Elmo and Luigi Bertolli; a six-room Mexican Cinépolis movie complex, three of which equipped for 3D projection; and a 35-restaurant food court, including Burger King, McDonald's, Bob's and Pelé Arena Café; as well as a wealth of other leisure options and 1,979 parking spaces.

The works began in December 2010 and lasted for 17 months. On the inauguration date, 97% of GLA was leased and more than 70% of stores were open for business. The mall is expected to generate NOI of R$26.4 million for BRMALLS. This is the Company's eighth mall in Minas Gerais and increased owned and total GLA in the state by 15.9% and 23.5%, respectively.

São Bernardo Plaza Shopping

São Bernardo Plaza Shopping is the largest mall ever developed by BRMALLS and opened in November 2012, adding 42,900 m² of total GLA and 25,700 m² of owned GLA to our portfolio. São Bernardo Plaza Shopping is BRMALLS' 12th mall in the state of São Paulo and its 31st in the Southeast region. BRMALLS establishes itself as the largest mall operator in the state of São Paulo, reaching a total GLA of 391.3 thousand m² and an owned GLA of 224.2 thousand m². This presence in the state contributes to commercial and operational synergies for the Company.

São Bernardo has a population of over 900 thousand people, is the biggest city in the ABC region and concentrates 40% of its GDP. São Bernardo do Campo is Brazil's second city in terms of consumption potential growth and the largest in the ABC region in terms of households, residents and GDP.

The mall opened with 206 stores and over 99% of the stores leased. São Bernardo Plaza Shopping has 18 anchor stores and megastores, including Riachuelo, Renner, C&A, Le Biscuit, Centauro, Saraiva, Polishop, Magazine Luiza, Ponto Frio and Fast Shop. The mall mix also consists of, among other leisure options, a Cinépolis movie theater and NeoGeo Games. The restaurant mix has 35 regionally renowned names such as São Judas Tadeu and Hocca Bar. To meet the consumer demand the mall has 2,487 parking spaces. This mix provides São Bernardo Plaza Shopping with a strong presence of anchors, a regional food court and many leisure options.

We estimate that the mall will generate approximately R$31.4 million in stabilized NOI with an expected internal rate of return, real and unleveraged, of 16.2%.
 

Londrina Norte Shopping

Londrina Norte Shopping opened on November 1st, 2012 adding 33,0000 m² of total GLA and 23,100 thousand m² of owned GLA to our portfolio. BRMALLS acquired 70% of Alvear in August 2011, which holds 100% of the mall. Londrina Norte Shopping is BRMALLS 6th mall in the state of Paraná and the 8th in the south region. BRMALLS establishes itself as the largest mall operator in the region, with a total and owned GLA of 275.6 thousand m² and 177.7 thousand m². Furthermore, this is our 2nd mall in Londrina, strengthening our presence in the city, which contributes towards leasing and operational synergies for the Company. In Londrina, BRMALLS is present both in the north zone, with the current opening, as well as in the south zone of the city, with Catuaí Shopping Londrina, leading to a dominant position in the market.

Londrina Norte Shopping is located at the intersection of Rodovia Carlos João Strass with Av. Henrique Mansano, a major growth area in the city and a zone of influence with great consumption potential. The north zone of Londrina has more than 500 thousand consumers that have access to only few options of leisure, services and retail. The mall comes to meet this pent up demand.

Londrina Norte Shopping has a total of 165 stores and opened with more than 92,0% of the it´s GLA leased. There are 7 anchor stores, such as Angeloni Hipermercado, Marisa, Magazine Luiza, Lojas Americanas, Riachuelo, Pernambucanas and C&A; and 2 megastores, Paquetá Esporte and Ri Happy. Additionally, the mall has other well-known satellites stores. The mall also has a Cinesystem movie theatre, with 6 screens, and many other leisure options. In the food court there are 18 restaurants and to properly meet the demand, the mall has 1,600 parking spaces. We estimate that the mall will generate approximately R$16.3 million in stabilized NOI to BRMALLS. The real and unleveraged IRR for the project is 13.0%..