en.Wedoany.com Reported - Brazilian shopping mall operator Multiplan, after completing renovation cycles at 19 of its 20 malls, is planning to develop "mini neighborhoods" on land reserves surrounding its properties to unlock asset value and increase foot traffic. The company currently owns 864,000 square meters of private land available for sale adjacent to its malls, representing approximately 90% of its total mall area. The total leasable area (ABL) of its malls is 903,000 square meters. According to real estate market sources, considering an average cost of R$12,000 per square meter, selling land and developing projects could generate at least R$10 billion in revenue for Multiplan, although the company has not confirmed this figure.

Multiplan's Chief Financial Officer, Armando d'Almeida Neto, stated that these plots, located next to the malls, will be used to develop mixed-use projects primarily for sale, encompassing commercial and residential properties. Some land will be sold directly, while the company will develop and build on other portions itself. Through this approach, the company accelerates development around its malls and unlocks the value of assets held in its land bank, generating cash and returns for shareholders.

This growth plan already has a concrete example. The Golden Lake project, currently under development and described by the company as a "private neighborhood," is located 660 meters from the BarraShoppingSul mall in Porto Alegre, Rio Grande do Sul, adjacent to the Guaíba River, with a potential salable area of 250,000 square meters. The buildable land area alone is approximately 281,000 square meters, nearly four times the mall's own area (ABL of 75,400 square meters). Once fully completed, Golden Lake will feature 1,400 apartments, expected to bring approximately 6,000 new people to the area around the mall. As of last December, 94 properties had been delivered, meaning at least 500 residents will consider the mall part of their backyard, with the company having utilized 34,000 square meters of land.

Multiplan's next development is located around the VillageMall in the Barra da Tijuca district of Rio de Janeiro, covering 36,000 square meters, with a total available area of 80,000 square meters around that mall. Construction is scheduled to begin in 2027, initially building residential projects and later expanding into commercial projects, currently in the approval phase. The 864,000 square meters of land are distributed around 11 of its malls. Besides BarraShoppingSul and VillageMall, the largest plots are located around ParkShopping Campo Grande (161,700 square meters), Shopping Anália Franco (115,000 square meters), and ParkShopping São Caetano (108,000 square meters). The company has already sold some plots adjacent to ParkShopping Campo Grande, ParkJacarepaguá, and ParkShopping Canoas for third-party real estate development, with related amounts to be disclosed and reported in the balance sheet.

In addition to land development, Multiplan is increasing foot traffic by directly connecting commercial complexes to its malls. Last year, the company reopened an air-conditioned corridor connecting Morumbi Corporate on Avenida Chucri Zaidan in São Paulo's South Zone to Morumbi Shopping. The CFO noted that high capital costs (annual interest rate of 14.5%) pose a challenge to project development, but projects will not be halted, only the pace of growth will change.

Financial data shows that from January to March this year, Multiplan posted a net profit of R$316.1 million, up 35.1% year-over-year; EBITDA was R$516.5 million, up 28.9% year-over-year. Real estate sales revenue reached R$300.9 million, a surge of 1,449.6% year-over-year, accounting for 34.2% of gross revenue. Rental income represented 49.6% of current period revenue. For the full year 2026, MULT3 shares accumulated a gain of 7.8%, with a 12-month increase of 9.4%, and the company's market capitalization stands at R$15 billion.

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