Shopping Plaza Niterói
We acquired the Shopping Plaza Niterói in 2007 for R$550.7 million. In the same year, the mall generated an NOI of R$40.6 million. In 2012, NOI generated by the asset amounted to R$110.1 million, an increase of 117.1%. The main factors in this turnaround include optimizing the mix and parking operations, reducing vacancy and constant leasing spreads.
Plaza Niterói expansion was opened on May 3rd, 2013, and added 10.5 thousand m² in total and owned GLA, an increase of 31.3% on the malls GLA. The expansion includes a gourmet area with a panoramic view of Guanabara Bay in order to enhance the consumer experience.
The expansion added 302 new parking spaces and 77 new stores. The main stores are Sephora, Le Lis Blanc, Brooksfield, H.Stern, The Fifties, Riachuelo, Gula Gula, and Calvin Klein, among others.
We expect the mall to generate stabilized NOI of R$26.0 million and a real and unleveraged IRR of 18.6%. The expansion was opened with more than 98.3% of its GLA already leased.
Plaza Niterói the biggest NOI contributor for the company representing 9.2% of the total NOI of the company in 2013, which totaled R$1,207.2 million.
Main stores:
Natal Shopping
Throughout the third quarter we announced the opening of Natal Shopping's expansion, located along the BR-101, Natal Shopping opened in 1992, as the first mall in the city and was acquired by BRMALLS in 2007. The area where the mall is located is one of the most prosperous of the city; the south zone is the fastest growing region today. The mall went through several renovations and attracts not only the retailers, as the A and B consumers of the region.
The expansion seeks to strengthen even more the mall and adds 58 stores. The main stores are Ri Happy, Le Lis, Renner,Centauro, Polishop, Vivara, Track & Field, among others. In addition to the stores, the expansion brought the most modernmovie theatre in the city, which contains 6 rooms operated by Cinépolis, all with 3D technology and one VIP. A total of 871 parking spaces were also added to meet the malls high demand. With this expansion, the total and owned GLA of the mall increase in 54.7% to 27.0 thousand m² and 13.5 thousand m², respectively. We also concluded a retrofit project in the mall, in which we renewed the floor, lining, lighting and the deck parking.
We estimate the expansion will generate approximately R$9.5 million of stabilized NOI for BRMALLS. The real and unleveraged IRR for the project is 18%.
Main Stores:
Rio Anil
In 31st of October, we opened the expansion of Rio Anil Shopping, located in the city of São Luís, state of Maranhão. The mall is located in one of the most populous areas of São Luís, at the intersection of two of its busiest avenues (Av. Jerônimo de Albuquerque and Av. São Luis Rei de França). This privileged location contributes to a quick and easy access to the mall.
The mall’s occupancy rate reached 100.0% in the 3Q13 and high levels of leasing spread, which represents a high demand from tenants in the mall. Also, sales/m² in 3Q13 when compared to 3Q12 increased 16.6%.
We opened the expansion of Rio Anil on schedule and on budget. The expansion aims to redevelop the asset and add a total of 91 stores. The main stores include Ri Happy, Le Biscuit, Nagem, Arezzo, Renner, TNG, Cattan, among others. Also, 550 parking spaces were added, to meet the mall’s high demand. With the expansion, 11.5 thousand m² of total GLA and 5.7 thousand m² of owned GLA were added to the mall, which represents an increase of 43.6%, raising the total GLA of the mall to 37.8 thousand m².
We estimate this project will generate stabilized NOI of R$6.7 million for BRMALLS. The project’s real and unleveraged IRR is 21.0%.
Main Stores:
Sete Lagoas
In December, we opened the expansion of Shopping Sete Lagoas. The project added a total GLA of 1.500 m² and 1.100 m² of owned GLA to our current portfolio or an increase of 9.3%. BRMALLS opened the expansion of Sete Lagoas on the scheduled date and budget.
We estimate that this expansion will generate R$515,000 of stabilized NOI to BRMALLS. The internal rate of return of the project, real and unleveraged is 18.1%.
The expansion aims to anchor more the asset, bringing tennants such as Lojas Americanas and Eletrosom.
Main stores:
Contagem is the second largest city in the state of Minas Gerais due to its strong industrial park. According to IBGE, the city has a population of 638 thousand people, formal employment increased by 4.9%, above the national average of 4.4% and the city has a GDP per capita of R$ 30,743.
The mall is located just 8 minutes from Lagoa da Pampulha, the location is strategic because it has direct access to the main avenue that connects Contagem to the region of Pampulha, and there are no shopping malls in the area of influence. There are 505,000 inhabitants in the region with an average monthly income of R$ 3,130.
The mall will be supplying the region with a strong and qualified area of consumption, leisure and entertainment. To meet the demand the mall has a parking space for 2,616 vehicles, of which about 2,000 are indoors.
The anchors and mega stores will make Contagem the most dominant mall in the region, with stores such as: Renner, Riachuelo, C&A, Lojas Americanas, Casas Bahia, Marisa, Kalunga, 1001 Festas, Lojas Rede, Polishop e SupermearketSuper Nosso, besides of prestigious brands such as Track & Field, Luiggi Bertolli Klus, Brooksfield, Polo Wear, TNG, Youcom, among others.
Among other leisure options, a cinema complex with 8 rooms operated by Cineart, all with 3D digital technology and a games center, operated by Playland.
The construction of Shopping Contagem began in November 2012 and lasted 11.5 months. After the opening, BRMALLS holds a 51% stake in the asset. The project opened with 92.3% of its GLA leased.
The mall is expected to generate R$ 22.2 million of stabilized NOI for BRMALLS. The total investment of the project BRMALLS was R$ 155.7 million. The internal rate of return of the project, real and unlevered, reached 15.0%.
In addition, we also increased the number of malls in our portfolio from 51 to 52 malls, with number of malls managed by the Company reaching 43 and the number of malls leased reaching 45 malls.
