Alexander Otto, CEO of European shopping center market leader ECE, expands his business activities to Brazil and will henceforth become shareholder of the shopping center company Sonae Sierra Brasil, SA.
Otto will acquire from the US-based company DDR Corp. its 50% share in a joint-venture with the international shopping center specialist Sonae Sierra for approximately €240 million. This joint venture owns 67% of the listed Sonae Sierra Brasil, SA (SSBR3) as well as a significant share of "Parque D. Pedro", a shopping center located in the São Paolo metropolitan area which is the largest center in the portfolio of Sonae Sierra Brasil, SA.
Sonae Sierra Brasil, SA is one of the leading shopping center companies in Brazil and currently operates twelve centers, ten of which are owned by the company and two are owned by third parties. Two-thirds of the centers are located in the federal state of São Paolo. This portfolio comprises a total leasable area of 502,000m². "Parque D. Pedro" Shopping Center alone has a GLA of 121,000m² and 400 shops. Sonae Sierra Brasil, SA is a fully integrated developer, operator, and investor in shopping centers with approximately 145 employees.
Alexander Otto says: "I am pleased that, with the share purchase of Sonae Sierra Brasil, we can invest in South America for the first time. In a challenging market environment in the emerging markets we have the opportunity to bring our global expansion a big step forward. I am convinced of the professionalism and large potential of the company and see good growth perspectives in this dynamic market."
Fernando Guedes de Oliveira, CEO of Sonae Sierra: "I am pleased that we will have Alexander Otto as our partner in Sonae Sierra Brasil. Together with DDR we were able to develop one of the main shopping center companies in Brazil and we strongly believe that the vision we share with Alexandre Otto for the future of the company will allow our operation in Brazil to grow at a faster pace over the next years. "
Daniel Hurwitz, CEO of DDR Corp.: "We want to thank our friends and partners at Sonae Sierra for a profitable and constructive relationship for more than 7 years. We wish Mr. Otto great success in the future as the new venture continues to pursue growth opportunities in this very exciting market. "
The transaction is expected to be closed until the end of March, 2014.
Source: ECE
