SONAE SIERRA BRASIL SA 
By
Sonae Sierra Brasil completed a transaction agreement with
CSHG Brasil Shopping FII a fund managed by Credit Suisse
Hedging-Griffo to obtain an additional 30.0% ownership
interest in Shopping Plaza Sul in exchange for a minority
stake in Shopping Penha and R$ 63.9 million in cash.
Shopping Plaza Sul is located in the south region of the city
of São Paulo and has 23.0 thousand sqm of GLA. Through this
transaction, which represents an additional 6.9 thousand sqm
of owned GLA, Sonae Sierra Brasil has increased its ownership
to 60.0% of this mall. The 30.0% ownership interest in Plaza
Sul was valued at R$ 102.9 million.
Shopping Penha is located in the east region of the city of
São Paulo and has 29.6 thousand sqm of GLA. Sonae Sierra
Brasil has transferred a
17.12% stake in this mall to CSHG Brasil Shopping FII, which
corresponds to 5.1 thousand sqm of owned GLA.
The R$ 63.9 million in cash will be paid to CSHG Brasil
Shopping FII in 42 monthly installments adjusted by CDI.
The nominal, unleveraged and after-tax internal rate of
return (IRR) for the transaction is 16.9%. The implied cap
rate of the transaction for Plaza Sul is
9.4% based on the mall's expected NOI in 2012. The implied
cap rate of the transaction for Shopping Penha is 9.5% based
on the mall's expected NOI in
2012.
With this transaction, Sonae Sierra Brasil will reduce its
ownership in Shopping Penha from 73.18% to 56.06%,
nevertheless maintaining the controlling ownership stake of
this mall.
CSHG Brasil
Shopping FII
Other
CSHG Brasil
Shopping FII
Other
30.00% 30.00% 40.00%
73.18%
14.38%
12.44%
Simplified shareholder structure post-transactions:Other
CSHG Brasil
Shopping FII
Other
60.00% 40.00%
56.06% 31.50% 12.44%
Description of the malls:Highlights Plaza Sul Penha
Opening 1994 1992
To tal GLA ('00 0 sq m) 23.0 29.6
SS B's o w nership 30.00%
