Gazit Brasil’s $131.1 Million acquisition of 33% of Shopping Cidade Jardim in Sao Paulo


Goulart & Colepicolo and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga have advised on the deal

Gazit-Globe (NYSE:TSX) (TASE:GZT), one of the world’s leading multi-national real estate companies focused on the ownership, management, acquisition, development and redevelopment of supermarket-anchored shopping centers in major urban markets, announced today that it has entered into a binding agreement to purchase 33% of Shopping Cidade Jardim in Sao Paulo, Brazil, for R$ 410 million (approximately USD 130M), excluding closing costs.

Shopping Cidade Jardim is one of Sao Paulo’s highest quality shopping centers located in the affluent neighborhood of Morumbi. The shopping center is situated alongside one of the city’s major ring road highways and integrates with nine high-end residential buildings and three office towers. Approximately 665,000 inhabitants live within a 5-kilometer-radius of the property with an average annual household income of R$ 165,000, which is more than double the city’s average.

Shopping Cidade Jardim was opened in 2008 with approximately 200 stores, including Chanel, Prada, Louis Vuitton, a fitness club, cinemas and high-end restaurants. The total GLA of the mall is approximately 39,000 sqm, it includes 1,170 parking spaces with a 97% occupancy.

The remaining 67% stake in the mall will continue to be held by JHSF (Bovespa:JHSF3). Founded in 1972, JHSF is controlled by the Auriemo family, and is recognized for its ability to identify and develop state-of-the-art real estate assets in major cities in Brazil.

The purchase agreement includes a right of first offer in favor of JHSF to acquire up to 33% interest in an asset owned by Gazit Brasil, in the event of the redevelopment or sale of that asset. In consideration for this right of first offer, Gazit Brasil will be granted an option to acquire a 33% ownership stake in the potential retail development to be carried out on the two parcels of land which are adjacent to the Shopping Cidade Jardim mall.

Goulart & Colepicolo has advised Gazit-Globe Ltd. with a team including Cristiano Colepicolo, João Goulart, Gabriel Tosetti, Pedro Paulo Rodrigues, Felipe Paiva, Leandro Zardi, Eduardo Rufini, Luiza Cazassa, Gabriel Tosetti, Leandro Zardi, Regina Barão and Marianna Valença.

Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga has advised JHSF Participações S.A. with a team including Moacir Zilbovicius, Paula Vieira de Oliveira, Rossana Fernandes Duarte, Andrea Bazzo Lauletta, Eduardo Marques Souza, Janaína de Cássia Gomes Vargas, Daniela Adler Pimentel Duarte, Thais Ferraci Martone and Marcela da Fonte Freire.

Involved fees earner: Cristiano Silva Colepicolo – Goulart & Colepicolo; João Gilberto Freire Goulart – Goulart & Colepicolo; Pedro Paulo Rodrigues – Goulart & Colepicolo; Felipe Túlio de Paiva – Goulart & Colepicolo; Eduardo Henrique Rufini – Goulart & Colepicolo; Luiza de Paula Santos Cazassa – Goulart & Colepicolo; Marianna de Deus Holanda Valença – Goulart & Colepicolo; Gabriel Tosetti Silveira – Goulart & Colepicolo; Leandro Piechocki Zardi – Goulart & Colepicolo; Regina de Carvalho Barão – Goulart & Colepicolo; Moacir Zilbovicius – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Paula Vieira de Oliveira – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Eduardo Marques Souza – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Daniela Adler Pimentel Duarte – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Rossana Fernandes Duarte – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Janaína de Cássia Gomes Vargas – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Marcela da Fonte Freire – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Andréa Bazzo Lauletta – Mattos Filho Veiga Filho Marrey Jr & Quiroga;

Law Firms: Goulart & Colepicolo; Mattos Filho Veiga Filho Marrey Jr & Quiroga;

Clients: Gazit-Globe Ltd.; JHSF Participações S.A.;

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Author: Ambrogio Visconti.