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Gazit Brasil Completed the Sale of Extra Itaim in Sao Paulo for Total Proceeds of R$350M

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The website Business Inseder announced today, Dec. 10, than Gazit-Globe, 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, completed the sale of Extra Itaim in Sao Paulo for total proceeds of R$350M ($100 mln dollars) realizing a cash gain of R$140M. The sale price represents a gain of R$108M above the IFRS value in Gazit-Globe financial reports as of September 30, 2017.

Gazit Brasil acquired its first 17.5 percent stake in 2010 and since 2013, its ownership was increased to 100 percent through Gazit Brasil’s proactive management after indirectly acquiring from 3 pension funds, 17.5 percent each, while its remaining 30 percent stake was acquired in April 2017 from bankruptcy court.

The property is leased to Extra Hypermarket (Casino Group) with a total GLA of 18,260 sqm, gross area of 57,080 sqm with 1,365 parking spaces on a land area of 17,850 sqm.

Mia Stark, Gazit Brasil CEO: “With this transaction Gazit Brasil is maximizing the retail value in this site. The Extra Itaim sale represents Gazit Brasil’s ability to continue creating value on its Sao Paulo city focused strategy by recycling capital proceeds of this deal into other value-add opportunities identified throughout the city.”

Gazit Brasil in recent years became a dominant player with defined strategy to focus on urban located assets in one of the alpha cities in the world, Sao Paulo, and as result built a unique portfolio of irreplaceable assets that reach 5 million Paulistanos monthly. Due to its location and hands on management, the portfolio has continued to grow across all metrics, year over year.

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