Canadian Investor Develops Brazilian Shopping Center; Expands Existing Local Asset
- Aug 09, 2012
An underdeveloped Sao Paulo shopping center–Shopping Golden Square, was recently the object of a major investment by a real estate subsidiary from one of the largest Canadian institutional fund managers. Ivanhoe Capital, a subsidiary of Caisse de dépôt et placement du Québec, has also announced that it is set to expand its 2008-opened Porto Velho shopping center, a property that it had developed with local partner Ancar Ivanhoe. The expansion costs, added to the acquisition of a 73.2 percent share in Shopping Golden Square means a total investment of approximately $132.8 million on Cambridge Ivanhoe’s part.
Shopping Golden Square is currently being developed on a site located in one of Sao Paulo’s highest-rated suburban areas, Sao Bernardo de Campo. The structure will have three floors, and occupy an area of 322,939 square feet. According to the developer, preliminary agreements with retailers have already been reached, with about half of the available space being spoken for. Once the retail center becomes operational, with a construction deadline currently set for April 2013, it will join a network of 11 other such properties the Canadian company currently owns in Brazil. Ancar Ivanhoe is also handling the acquisition of the majority stake in Shopping Golden Square.
Regarding the expansion of its Porto Velho shopping center, Ivanhoe will be adding 147,713 square feet to the existing 322,153 square feet that the property offers. The extra space will be divided between a new food court, seven additional department stores, and 543 more parking spaces. The extension should be operational by November 2013, according to data released by the company.
With investments such as Shopping Interlagos in Sao Paulo, Shopping Nova America, Downtown, Botafogo Praia Shopping and Boulevard Rio Iguatemi in Rio, the Ancar Ivanhoe partnership has created an increasingly positive image for itself where the retail sector is concerned. Ivanhoe Cambridge owned an asset package that comprised properties from 20 countries across the globe valued at over $30 billion at the end of 2011’s fourth quarter.