3Q10_Acquisitionof25.0interestinShoppingSantaUrsula

8/4/2019 3Q10_Acquisitionof25.0interestinShoppingSantaUrsula

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CASE STUDY

Acquisition of 25.0% interest in Shopping Santa Úrsula



Case Study

MULT3

Acquisition of 25.0% interest in Shopping Santa Úrsula

Increasing interest in a recently renovated shopping center

On November 8, 2010, Multiplan announced that it acquired an additional 25.0% stake in

Shopping Santa Úrsula, in Ribeirão Preto, countryside of São Paulo, for R$45.0 million. This

acquisition increased Multiplan’s interest to 62.5% in the shopping center, which just completed

a renovation project and is concluding its tenant mix change. These improvements required a

CAPEX of R$15.0 million which was invested by the Company and its partners turning

Shopping Santa Úrsula into a

modern shopping center with

a new and improved mix.

To conclude this significant

change, the Company

needed to rearrange its

tenant mix, bringing it down to

an occupancy rate of 65.6%.

In September 2010, this rate

had gone back up to 87.1%.

The Company expects this

figure to further increase throughout the following months, given the improvements made to the

mall combined with the growth of the city.

The shopping is located in one of the most densely populated neighborhoods of Ribeirão Preto,

composed essentially of A and B classes.

Its premium location puts the shopping within the range of over 240 thousand potential

consumers in a 10 minute radius. The city has 570 thousand inhabitants*, while the region

(200km radius) has over 6 million. The area is quite wealthy given that it is the largest sugar

cane producing region of the world* and dominates 10% of the agricultural sector of the country.

* Source: ACIRP official guide.

Shopping Santa Úrsula’s monthly occupancy rate since the Company’sfirst 37.5% stake acquisition

87.7%

65.6%

87.1%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

M a y - 0 8

J u n - 0 8

J u l - 0 8

A u g - 0 8

S e p - 0 8

O c t - 0 8

N o v - 0 8

D e c - 0 8

J a n - 0 9

F e b - 0 9

M a r - 0 9

A p r - 0 9

M a y - 0 9

J u n - 0 9

J u l - 0 9

A u g - 0 9

S e p - 0 9

O c t - 0 9

N o v - 0 9

D e c - 0 9

J a n - 1 0

F e b - 1 0

M a r - 1 0

A p r - 1 0

M a y - 1 0

J u n - 1 0

J u l - 1 0

A u g - 1 0

S e p - 1 0

Tenant ex it for

renovation Tenant mix

improvement



Case Study

MULT3

Santa Úrsula location in the center of Ribeirão Preto

A region and a shopping center with a strong growth potential

The location further benefits from the fact that it is only 3.5km distant from Ribeirão Shopping,

another Multiplan managed and owned mall. This allows management to handle bothbusinesses thus generating synergies. While Ribeirão Shopping is a regional, democratic and

consolidate mall, Santa Úrsula is just concluding its renovation and being “reborn” as an A and

B modern neighborhood mall.

The shopping has already shown improvements by narrowing the large spread between its

rental revenue/m² and that of Ribeirão Shopping. While these figures for rent per m2 are three

times bigger at Ribeirão Shopping in 3Q10, sales/m² at this shopping are only twice as high as

those of Santa Úrsula, showing strong potential for increases in sales and especially in rent

growth.Given these differences, the chart below attempts to project how the NOI the shopping could

deliver if its performance converges to that of Ribeirão Shopping or the Company’s portfolio.

The Company believes that the shopping has strong growth potential and could lead to high

returns for the Company after its renovation and tenant mix change.

Performance spread between Shopping Santa Úrsula andRibeirão Shopping

R$ 2.209,74R$ 2.354,37 R$ 2.400,27

R$ 891,32R$ 1.082,41

R$ 1.215,62

R$ 184,29 R$ 187,29 R$ 191,45

R$ 43,48 R$ 52,34 R$ 63,41R$ (1.500,00)

R$ (1.000,00)

R$ (500,00)

R$ -

R$ 500,00

R$ 1.000,00

R$ 1.500,00

R$ 2.000,00

R$ 2.500,00

1Q10 2Q10 3Q10

118%

202%

Sales/m²

Rent/m²

97%

324% 258%

148%

RBS

RBS

SSU

SSU



Case Study

MULT3

Shopping Santa Úrsula’s Potential NOI using different drivers

3,9 M 4,6 M6,5 M

12,5 M

17,8 M

25,1 M

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%16,0%

18,0%

20,0%

-

5,0 M

10,0 M

15,0 M

20,0 M

25,0 M

30,0 M

SSU rent

using

portfolio

margin

All vacant

area leased

at SSU Rent

All vacant

area leased

at RBS Rent

Rent/m²

=70% RBS

Rent/m²

=100% RBS

Rent/m²

=Portfolio

NOI 100%

Cap-Rate

Documents

3Q10_Acquisitionof25.0interestinShoppingSantaUrsula