Brazilian shopping centre operator Allos partners with Kinea to create investment fund

Shopping centre operator Allos has signed a memorandum of understanding with investment firm Kinea, securing an agreement that aims to create a real estate investment fund, Kinea Allos Malls Fil, which will be co-managed by both companies.

According to the statement, the next step will be to raise funds through a primary share offering. The final offering volume is expected to be between 789.5 million and 1.97 billion reais. These funds will be used to acquire mature assets from the Allos portfolio.

The initial portfolio, with stakes depending on the final fundraising amount, will include 49 to 100 percent of Shopping Metrô Santa Cruz; 11 to 50 percent of Plaza Sul Shopping; and 10 to 12 percent of Shopping Villa-Lobos, all located in São Paulo. It also includes 5 to 15 percent of Bangu Shopping and 65 percent of Caxias Shopping, both in Rio de Janeiro; and finally, 12 to 40 percent of Shopping Parangaba in the capital of Ceará.

Strategic partnership

Kinea Allos Mall Fil will consolidate a strategic partnership between two of the biggest names in the real estate market. A reciprocal exclusivity agreement is planned between the two companies to carry out the operation until December 31, 2026.

“This new business vertical opens a growth cycle for Allos and creates recurring revenue from asset and fund management, supported by its positive track record in capital allocation. It also creates portfolio management opportunities and allows for joint acquisitions in the future without altering the company's current shareholder remuneration strategy. Allos will have an equal stake in the Fund's management, will be a unitholder with an initial 24 percent stake in the Fund, the administrator of the shopping centres and co-owner of some of the assets,” the statement said.

According to the material fact, the completion of the transaction is subject to certain preceding conditions, including the right of first refusal.

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