BR Malls Adds 33% Mall Stake

BR Malls has acquired a 33% stake in the Itau Power shopping center, cementing its presence in Brazil’s Minas Gerais state. BR Malls will pay BRL85.5m ($51m) for the participation, plus an additional BRL2.3m for one third of the parking operation, the company says. As per BR Malls’ estimation, the mall will likely generate BRL9.8m in net operating income over the coming year. BR Malls and Itau Power officials could not immediately be reached for additional comment. BR Malls estimates the price paid gives it an implied real and unleveraged internal rate of return of 14.2%, and 14.5% with the parking buy. With the deal, BR Malls increases its total gross leasable area to 1.47m square meters.