TEL-AVIV, Israel, Nov. 11, 2016 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:TSX) (TASE:GZT), one of the world's leading multi-national real estate companies focused on the ownership, management, acquisition, development and redevelopment of supermarket-anchored shopping centers in major urban markets, announced today that it has entered into a binding agreement to purchase 33% of Shopping Cidade Jardim in Sao Paulo, Brazil, for R$ 410 million (approximately USD 130M), excluding closing costs.
Shopping Cidade Jardim in Sao Paulo
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/19909827-818e-4eb2-85c6-0518a9fa151c Shopping Cidade Jardim is one of Sao Paulo's highest quality shopping centers located in the affluent neighborhood of Morumbi. The shopping center is situated alongside one of the city's major ring road highways and integrates with nine high-end residential buildings and three office towers. Approximately 665,000 inhabitants live within a 5-kilometer-radius of the property with an average annual household income of R$ 165,000, which is more than double the city's average. Shopping Cidade Jardim was opened in 2008 with approximately 200 stores, including Chanel, Prada, Louis Vuitton, a fitness club, cinemas and high-end restaurants. The total GLA of the mall is approximately 39,000 sqm, it includes 1,170 parking spaces with a 97% occupancy. The remaining 67% stake in the mall will continue to be held by JHSF (Bovespa:JHSF3). Founded in 1972, JHSF is controlled by the Auriemo family, and is recognized for its ability to identify and develop state-of-the-art real estate assets in major cities in Brazil. The purchase agreement includes a right of first offer in favor of JHSF to acquire up to 33% interest in an asset owned by Gazit Brasil, in the event of the redevelopment or sale of that asset. In consideration for this right of first offer, Gazit Brasil will be granted an option to acquire a 33% ownership stake in the potential retail development to be carried out on the two parcels of land which are adjacent to the Shopping Cidade Jardim mall.