Iguatemi announces the acquisition of a 0.31% stake in Shopping Pátio Higienópolis

São Paulo, February 7th, 2018 - Iguatemi Empresa de Shopping Centers SA ("Iguatemi" or "Company") [B3: IGTA3], one of the largest full-service companies in the shopping center industry in Brazil, announces the acquisition of a 0.31% stake in Shopping Pátio Higienópolis ("SPH" or "Mall"), located in the city of São Paulo, SP.

ABOUT THE ACQUISITION

On February 7th, 2018, Iguatemi acquired a 0.31% stake in Shopping Pátio Higienópolis from Agropart Imobiliária Ltda and now holds a total stake of 11.5% in the asset.

In response to a selling offer made on the asset and to the fact that some of partners did not exercise their right of preference, Iguatemi acquired a stake above its right on SPH. The transaction amounted R$ 4.6 million, paid up front.

Iguatemi's involvement in SPH started in November 2013, when it was chosen, among a variety of other mall operators, including other publicly traded companies, to manage the Mall. The quality of services rendered in managing the Mall added to the partnership established with the various asset owners led to the owners consenting to Iguatemi's entering the asset in 2015.

In 2017, SPH reached R$ 115.4 million of total gross revenues and a NOI of R$ 117.3 million. Considering the 2017 NOI, without taking into account any future improvements, the transaction has an implicit multiple of 12.7x the Mall's 2017 NOI (cap rate of 7.9%).

Table 1: Transaction Financial Information

Consolidated

GLA (m2)

Transaction Value (R$ million) Stake acquired

2017 NOI (R$ million) Acquisition NOI Multiple (2017) Cap rate (2017)

34,100

4.6

0.31%

117.3

12.7x

7.9%

ABOUT SHOPPING PÁTIO HIGIENÓPOLIS

SPH opened in October 1999, in the district of Higienópolis, and became one of the most important and traditional malls in the city of São Paulo and in Brazil. It soon became a gathering point and reference for the A and B+ consumers of the Higienópolis district, presenting in 2017 revenues per square meter among Brazil's top 10 malls (R$ 3,385/sqm).

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The Mall is comprised of 286 stores, 6 movie theaters e 1 traditional theater. Its tenant mix is composed of high end stores and it has been improving throughout the years.

ABOUT THE REGION

SPH is located in the city of São Paulo, which is the most important consumption region in Brazil and amounts to approximately 11% of Brazil's GDP (source: IBGE, 2015). The area of influence of Patio Higienópolis, one of the oldest and most traditional of São Paulo, is densely populated with a highly qualified demand. In 2017, according to IBOPE, the average monthly income of a family in the primary area of the Mall reached R$ 14 thousand.

With 90.3 thousand inhabitants, this area generates a high flow of vehicles and pedestrians to the Mall, as a consequence of not only its qualified residential housing, but also to the existence of, among other, (i) public security institutions, (ii) a consulate, (iii) middle schools and high schools, (iv) medical centers, (v) cultural centers, (vi) churches and synagogues.

About Iguatemi Empresa de Shopping Centers S.A.

IR Team:

Iguatemi Empresa de Shopping Centers S.A. ('Iguatemi') is one of the largest full service companies in the Brazilian shopping mall sector. Its activities cover the whole range of the business, from conception, through planning, to development and management of regional shopping malls, outlets and mixed-use real estate complexes with office towers.

Cristina Betts

CFO and IRO

Roberta Noronha

IR and Integrated Planning Director

Carina Carreira

IR Coordinator

Iguatemi has equity holdings in 17 malls, 1 premium outlet and 4 commercial towers, with a total GLA of 746 thousand sqm; and an owned GLA of 455 thousand sqm (based on the percentage owned by Iguatemi at each mall). Iguatemi participates in the management of 15 of its 16 malls, its premium outlet and its office towers. It also has 2 greenfield premium outlet projects in progress. Iguatemi's stock is traded on the Novo Mercado of the São Paulo Stock Exchange (B3).

Arnon Shirazi

IR Analyst

Tel.: +55 (11) 3137-6872 / 6877ri@iguatemi.com.brwww.iguatemi.com.br

Any statements on the outlook for the business, estimates for operational or financial results, or the growth outlook for Iguatemi, that may be expressed in this report are projections, and as such are based exclusively on the expectations of Iguatemi's management in relation to the future of the business, and its continuing access to capital to finance the Company's business plan. Such statements are subject, substantially, to changes in market conditions, government rules, competitive pressures, the performance of the sector and the performance of the Brazilian economy, among other factors, and are, therefore, subject to change without prior notice.

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Iguatemi Empresa de Shopping Centers SA published this content on 07 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 February 2018 21:39:07 UTC.

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