Gazit-Globe Ltd (NYSE:GZT) has announced its decision to lower its stake in BR Malls Participacoes SA (ADR) (OTCMKTS:BRMSY) to less than 5%.
Gazit-Globe revealed that it disposed of some of the shares it held in BR Malls, thus reducing its stake to less than 5%. The value of the shares that were sold was NIS 90 million as of June 30, 2016, while the remaining shares were valued at NIS 90 million based on the value of the shares on the same date. Gazit Brazil, a subsidiary of Gazit-Globe also purchased the office building and the parking space right on top of the Center Shopping as well as the one at the bottom in Sao Paolo. The acquired property was valued at roughly 153 million Brazilian Reals which is equivalent to $47 million.
The proceeds from the sold BR Malls stake will be used to finance the property acquisition. Top Center Shopping represents a property with an urban mix including a shopping center. A 370 car parking space in Paulista Avenue and an office building. It is right within a landmark avenue in Sao Paolo and is the main business center in Brazil. More than 1.5 million people in Sao Paolo pass through Paulista Avenue every day. The avenue also hosts numerous financial institutions. The office building has 17 stories and the leasable area covers roughly 13,450 square meters.
Some of the biggest tenants in the building include Dow Jones, Goodyear, Proctor &Gamble and the Japanese Consulate among others. There has been 100% occupancy since September 2014 when the building was acquired by Gazit Brazil. Gazit-Globe CEO Rachel Lavine stated that her firm was proud to reveal remarkable profits from its investment in BR Malls. Lavine further noted that firm’s plan is to continue seeking out other possibilities for the purchase or sale of additional shares depending on the conditions in the market. Gazit-Globe will also consider other investment opportunities in real estate.
