Portuguese shopping center specialist sells half of its Brazilian business to US company

23 October 2006

Lisbon, Portugal, 23 Oct – Portuguese group Sonae said in Lisbon its subsidiary Sonae Sierra had sold half of its business in Brazil to US company Developers Diversified for US$150 million, which would be applied to expanding the company.

According to a statement, Sonae Sierra and Developers Diversified each agreed to contribute US$150 million in order to invest “approximately US$300 million in acquisitions and, or, new projects in Brazil over the next three years,” via the new partnership.

Sonae Sierra Brazil, according to the US press, is the second-largest company in its business area in Brazil, and controls nine shopping centers, including the largest in South America.

Developers Diversified, a company listed on the New York stock exchange, said it had chosen Sonae Sierra because it was “a strong partner” with “proven experience” in the sector in Brazil and Europe.

Sonae Sierra is a company specialized in shopping centers, which was founded in Portugal in 1989 and is owned in equal share by Sonae and British group Grosvenor. (macauhub)