Goulart & Colepicolo Advogados and Cescon, Barrieu, Flesch & Barreto advised on the deal
Gazit-Globe (NYSE:GZT) (TSX:GZT) (TASE:GZT), a global owner, developer, and operator of supermarket-anchored shopping centers and retail-based, mixed-use properties located in urban growth markets, announced today that its wholly owned subsidiary, Gazit Brasil, has entered into a binding agreement to acquire 70% of Internacional Shopping, a 77,000 sqm shopping mall in the northern part of metropolitan Sao Paulo, for R$937M (approximately USD 281M), excluding closing costs. The all-cash deal is expected to close in the later part of first quarter 2018, and will be funded by recent dispositions including gains on sales of assets, retained free cash flow and other sources of Company capital.
Opened in November 1998, Internacional Shopping is amongst the top ranking malls in Brazil and one of the largest, most dominant and established shopping malls in the Sao Paulo metropolitan area. Strategically located between the busiest international airport of South America, Guarulhos airport (40M passengers annually) and Sao Paulo city, it is situated along the main Dutra Highway, with access, and visibility of 850,000 cars daily.
The mall, which will be controlled and managed by Gazit Brasil, currently has 77K sqm of GLA situated on 123K sqm of land area with, 4,200 parking spaces and almost 200K sqm of additional building rights. It is currently 98% occupied by 360 tenants, anchored by hypermarket, food operators, entertainment and an array of services and convenience uses, with sales of approx. R$1bn, 30 million visitors and 4 million vehicles annually.
The announcements this year of the airport’s plan to expand and invest approx. R$1.5bn over the next 5 years, and the commitment of the state government to invest R$6.7bn in new metro lines adjacent to the mall that will connect Sao Paulo city to the entire region in the next 2 years is consistent with Gazit Brasil’s focused urban strategy to own irreplaceable assets, highlighted by the Company’s unique portfolio in Sao Paulo, which attract 8 million monthly visitors and generate approx. R$4bn of annual sales.
Goulart & Colepicolo advised Gazit-Globe and Gazit Brasil Ltda. with Cristiano Colepicolo, Pedro Rodrigues, Gabriel Tosetti, Leandro Zardi and Luiza Cazassa.
Cescon, Barrieu, Flesch & Barreto advised General Shopping Brasil with Daniel Laudisio (Picture), Daniel Medeiros Mortati and Maria Gabriela Pereira.
Involved fees earner: Cristiano Silva Colepicolo – Goulart & Colepicolo; Pedro Paulo Moreira Rodrigues – Goulart & Colepicolo; Gabriel Tosetti Silveira – Goulart & Colepicolo; Daniel Laudisio – Cescon, Barrieu, Flesch & Barreto; Daniel Medeiros Mortati – Cescon, Barrieu, Flesch & Barreto; Maria Gabriela Cruz Pereira – Cescon, Barrieu, Flesch & Barreto;