CHICAGO-General Growth Properties Inc. entered into a definitive agreement with Pershing Square Capital Management LP affiliates to acquire Pershing's entire 14.1% interest in the Brazilian Aliansce Shopping Centers SA. The deal is valued at $195.2 million, will increase GGP's ownership stake to 45.6% and is slated for a Q3 2012 closing.
According to a press release concerning the pending transaction, GGP will fund this acquisition with available cash resources. Aliansce is headquartered in Rio de Janeiro and focuses on ownership, management and development of shopping centers in Brazil. Aliansce owns interests in 18 malls, three of which are under development, totaling approximately 6.5 million square feet of gross leasable area. Sandeep Mathrani, Chief Executive Officer of GGP, and Shobi Khan, Chief Operating Officer of GGP, are members of the Aliansce Board of Directors.
On August 13, 2012, Aliansce reported its regional mall portfolio was 98.2% occupied during the second quarter and generated same store sales growth of 10.1% over the same period last year, the 10th consecutive quarter of double-digit growth. In addition, net operating income and adjusted earnings before interest, taxes, depreciation and amortization totaled R$75.9 million and R$65.6 million in the second quarter, respectively, each representing an increase of 39.8% over the same period last year.
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