Iguatemi signs BRL 876.1M shopping mall stake sale

Brazilian shopping mall operator Iguatemi announced that it signed definitive agreements to sell minority stakes in five properties to the TRX Real Estate fund for a total of BRL 876.1 million. The transaction was originally disclosed in August.

The transaction includes 36% of Iguatemi Alphaville, 36% of I Fashion Outlet Novo Hamburgo, 35% of Praia de Belas, 10% of Iguatemi Ribeirão Preto and 10% of Iguatemi São José do Rio Preto. Iguatemi will continue to manage all five properties, noting that the move reflects its focus on shareholder value creation through efficient capital allocation.

Under the agreed payment terms, BRL 569.5 million will be paid in cash at closing, of which BRL 350.5 million may be offset by credits from Iguatemi's subscription and paying-in of fund quotas. The remaining balance will be paid in two inflation-adjusted installments: BRL 131.4 million on the first anniversary of closing, and BRL 175.2 million on the second anniversary.

Closing remains subject to a resolutive condition tied to the conclusion of a financing transaction that allows the TRX Real Estate fund to fund the initial payment.