Brazilian publicly held company BR Malls Participacoes S.A. Tuesday announced it had bought 49.99 per cent of CIMA Empreendimentos do Brasil S.A. The deal gives BR Malls Participacoes the option to acquire the remaining 50.01 per cent stake of CIMA Empreendimentos do Brasil S.A. CIMA Empreendimentos do Brasil S.A. holds a 100 per cent stake in Shopping Tijuca and three commercial towers that are part of the same complex located in the Tijuca neighborhood in Rio de Janeiro.

Under the terms of the agreement, the deal will see BR Malls Participacoes acquire the stake for a price of 425 million reals, of which 265.6 million reals will be paid in 10 quarterly installments starting on the 21st month. Other than that, BRMALLS signed a document that guarantees a call option to acquire the remaining 50.01 per cent in up to 90 days from today.

However, the approval remains subject to approval from shareholders. From the total of 800 million reals for 100 per cent ownership stake, 775 million reals are regarding the mall and 25 million reals refer to the commercial towers.

The acquisition of Shopping Tijuca will generate great synergy to BR Malls portfolio in Rio de Janeiro, being its 9th mall in the city and its 24th mall in the Southeast region, which is responsible for the highest percentage of Brazil’s retail sales. Additionally, it will contribute to the firm’s presence in the mid-income class, noted the firm.

Considering 100 per cent of the mall, BR Malls estimates that Shopping Tijuca will generate 78.2 million reals in NOI (including service revenues) to BRMALLS in 2011, being one of the firm’s top NOI contributors in 2011. The potential estimated NOI for 100 per cent of the commercial towers is 5.0 million reals.

BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 39 malls, comprising 1,167.2 thousand m² of GLA and 552.3 thousand m² of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments.

Inaugurated in 1996, Shopping Tijuca is positioned in a privileged location in the Tijuca neighborhood, in an area with a large traffic of people, surrounded by three subway stations and enclosed by important avenues, besides being only a couple minutes away from Maracana Stadium and the UERJ University campus. Tijuca has over 150 thousand inhabitants, primarily from the mid-income class.