Foreigners Invest US$ 4.4 Billion in Brazilian Shopping Malls

Iguatemi shopping mall in Porto Alegre, Brazil Brazilian shopping malls are becoming more and more attractive to foreign investors. According to estimates by the Brazilian Association of Shopping Centers (Abrasce), over the last three years the foreign capital that entered the country to be invested in the sector has reached 7.5 billion Brazilian reais (US$ 4.4 billion).

The money came through the purchase of shares in Initial Public Offerings (IPOs) and through associations between national and foreign companies in the area. The chairman at Abrasce, Marcelo Carvalho, stated that foreign interest in the sector in Brazil grew in 2006 and 2007.

Until 2005, there were just two foreign companies investing in the sector in Brazil, stated Carvalho. From then on another seven have arrived. Among the foreign groups that currently operate in the area in Brazil are General Growth Properties (GGP), a North American group that joined forces with Brazilian company Nacional Iguatemi, which operates in the control and management of shopping malls, Canadian real estate enterprise Cadillac Fairview, which purchased part of the shares of Multiplan, and US company Developers Diversified Realty, which joined forces with Sonae Sierra. Sonae group is Portuguese but has been operating in Brazil for a long time.

Carvalho explained that the regions in the world with the greatest participation in shopping malls in Brazil are Canada, the United States and Europe, and that the investors are mainly the largest global players.

What has been attracting foreigners' attention to the great purchase centers of Brazil, according to the Market Relations director at the Brazilian Association of Retailers (Alshop), Luis Augusto Idelfonso da Silva, is the consistent growth in shopping mall retail and of the Brazilian economy.

"Based on good foundations," explained Silva. The greater income in poorer populations, caused, among other factors, by the income distribution program established by the government, has also collaborated to increase consumption and boost the shopping mall sector in Brazil, said Silva.

To Carvalho, from Abrasce, the arrival of foreigners here is also the result of the global moment. "In developed nations the market is already saturated. The players, therefore, have started eyeing the world and found in Brazil sophisticated enterprises and a mature industry," he said.

He recalled, as is the case with Silva, that the national macro economy collaborated for this movement. "Stability and the control of expenses have made Brazil more attractive to investors," stated Carvalho.

Figures supplied by Alshop show the opening of 22 shopping centers in Brazil last year alone. The number rose from 622 units to 644. Due to these new enterprises, 3,497 shops were opened in shopping malls. The sector's nominal revenues rose from US$ 60.3 billion in 2006 to US$ 68.4 billion last year.

The Alshop forecast for 2008, according to Silva, is that shopping malls should post revenues of US$ 74.7 billion. That is, there should be growth of 9.2%. At the end of last year, shopping malls in Brazil employed 868,000 people.

Anba – www.anba.com.br

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Still No Explanation for Death at Sea of Thousands of Cattle Shipped from Brazil

The Brazilian Association of Livestock Exporters (Abeg) believes that the death of at least ...

Will Debt-Ridden Brazil Follow Argentina’s Lead?

With the successful termination of Argentina’s debt swap offer on February 25, President Kirchner’s ...

Trash Brings Money and a New Culture to Brazil

Recycling still has a lot of growing to do in Brazil. Of the 5,560 ...

RAPIDINHAS

Judith Kay is fascinated with Brazil and its music. After falling in love with ...

Thanks to Women and Poor Serra Boosts Lead as Brazil’s Presidential Candidate

Governor of São Paulo José Serra, the main opposition candidate in Brazil’s presidential election ...

Brazil’s Super Pelí© Becomes a Cell Phone Hero

Brazilian soccer legend Edson Arantes do Nascimento, known internationally as Pelé, has signed an ...

Brazilian Chicken Exports Grow 13% While Beef Exports Fall 28%

According to figures released Friday, June 27, by the survey Statistics of Animal Husbandry ...

Furniture Fair in Brazil Shows the Best World Has to Offer

The International Machines, Raw Materials, and Accessories Fair for the Furniture Industry – Fimma ...

Brazilian Farmers Going Through Massive Losses

According to the vice president of the Federation of Agriculture in the state of ...

Brazil Is Producing More Grain That It Can Store

The difference between the low Brazilian storage capacity and the volume of grain available ...