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Acquisition Of Puerta La Victoria Shopping Center

FIBRASHOP WILL PROPOSE TO ITS SHAREHOLDERS MEETING THE ACQUISITION OF PUERTA LA VICTORIA SHOPPING CENTER VALUED AT Ps. 2,762.22 MILION

 

MEXICO, CITY, MEXICO, April 6, 2017 - FibraShop (FSHOP) (BMV: FSHOP13), FibraShop (FSHOP), CI Banco S.A. Institución de Banca Múltiple, Fideicomiso Irrevocable número F/00854, the first real estate investment trust specialized in shopping centers, announced today that it will propose to its CBFIs Holders Meeting the acquisition of “Puerta La Victoria” shopping center, located in the city Santiago de Queretaro, Queretaro, amounting to Ps. 2,762.22 million.

Today, FibraShop is also announcing its CBFIs Holders Meeting to be held on April 26, 2016 in Juan Salvador Agraz # 65 floor 21, Col. Santa Fe, Cuajimalpa de Morelos, Mexico City, among other topics of the agenda, this acquisition will be proposed.

 

Puerta La Victoria is located in Avenida Constituyentes, the main street in central Santiago de Queretaro city. Santiago de Queretaro is the tenth most populated city in Mexico and has been in the past 10 years the most dynamic in the country, attracting both international and domestic investment.

 

Puerta La Victoria, is a “Fashion Mall” part of a mixed-use complex that includes a retail area, an office building, a 120-room hotel and a residential area with seven-stage departments.

 

The project is expected to be completed and will launch its operations by August 15, 2017, with an estimated occupancy rate of 85%. As a result, this project will start generating revenues for FibraShop in the same month.

 

Puerta la Victoria, will have an approximate gross leasable area (GLA) of 57,240 sqm. As of today, 75% of the GLA has signed contracts and an additional 17% is in process of negotiations. Among the top tenants are: Sears, Cinepolis, H&M, Forever21, Sanborns, Smartfit, Pull and Bear, Stradivarius, Bershka, Sfera, Innova Sport, Lefties, Sonora Grill, to name some.

 

 

The value of the shopping center is estimated at Ps. 2,762 million, of which 75% is to be paid in cash, and the remaining 25% in CBFIs held in the Treasury, valued at a price of Ps. 17.10 per CBFI.

The seller has lock-up periods ranging from 6 to 24 months, and an option to sell back the CBFIs to FibraShop.

The shopping center is a new icon in Mexico, and is located in one of the most dynamic cities in the country, as such we estimate that the stabilization period would range between 24 and 36 months. Estimated net operating income (“NOI”) will amount to Ps. 220.9 million before a 24-month period. Additionally, we expect future profitability to significantly increase with a greater NOI potential. FibraShop estimates that by its fifth anniversary the annual NOI would be around Ps. 280 million.

In compliance with Article 35º of the Mexican Issuers Regulation (Circular Única de Emisoras), FibraShop will share with the authorities and investors a complete information document (Annex P) in which all details of the transaction are described, including the payment schedule and pro-forma financial information, among others (the document can be found at: www.fibrashop.mx).

 

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