BR Malls Participacoes S.A., a publicly held Brazilian company based in Rio de Janeiro (BRMALLS), announced it had acquired a 95% ownership interest in Shopping Paralela in Salvador. BRMALLS will be responsible for management and leasing of the mall.

Opened on April 28, 2009, Shopping Center Paralela mall is located in Salvador, Bahia. The city is the 3rd largest capital in Brazil, the largest city in the northeast, and has 2.7 million inhabitants. The asset has 39,800 m2 of total GLA and is located in an area of strong real estate development, a vector of the city growth.

The price paid for the mall and administration is R$237.5 million, of which 40% will be paid in cash and the remainder in four equal annual installments. The acquisition also involves the payment of R$47.5 million for 95% of the parking operation, and it will be paid in the same format as the acquisition of the mall. However, the first payment is conditioned on the initiation of parking fees collection in the city.

With the acquisition of Shopping Paralela, BRMALLS will have an important platform to expand its presence in the northeast, and consolidating its position in the region. The acquisition increases BRMALLS’ owned GLA in 37,800 m2, reaching a total of 672.1 thousand m2, and its total GLA in 39,800 m2, reaching 1,259,000 m2, reaching an average ownership stake of 53.4% in BRMALLS’ portfolio.

In addition to the 330 stores that make up its diverse mix, Shopping Paralela also has a 2-floor parking lot and 2,400 parking spots with a 200,000 vehicles/month capacity. The mall also has available area to ensure future expansion.

The mall is still undergoing a consolidation phase due to its recent opening, resulting in a vacancy of 8.5%, above the portfolio’s average of BRMALLS.

Since its inauguration the asset was managed and leased by an independent company. BRMALLS believes that by enhancing the operational management of the asset in order to reach the standard of its portfolio, the project will provide substantial improvements related to leasing, tenant mix and vacancy reduction.

Furthermore, the implementation of BRMALLS management practices is expected to generate efficiency and scale gains, due to its integration to the shared services center (CSC).

BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 41 malls, comprising 1,259.0 thousand m2 of GLA and 672.1 thousand m2 of owned GLA.