BR Malls Scoops up Portfolio

BR Malls has agreed to purchase control of a shopping mall portfolio in the State of Parana for BRL791m ($504m). The shopping mall developer is buying 70% of Alvear Participacoes, a holding vehicle for two existing malls and two projects to be built. The price includes BRL511m for the operating Cataui Londrina and Catuai Maringa centers, and BRL262m on the Catuai Londrina and Catuai Cascavel, to be completed in 2012 and 2013. BR Malls also plans to buy BRL19m in unused land. Of the total, BRL334m is to be paid up front, and BRL329m in 3 annual installments. BRL105m of the total comes in the form of assumed debt. The payments will be made using BR Malls’ cash. As is normal for the frequent acquirer, it did not use outside advisors on the deal. The purchase takes the number of malls in BR Malls’ portfolio to 43.