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Equity International-led Consortium Announces New Investment in Grupo Acosta Verde

14 April 2015

(Press Release) Equity International (EI), the privately held investor and builder of leading real estate companies outside of the United States, announced the closing of a new investment in Grupo Acosta Verde, a family-owned developer, owner and manager of shopping centers in Mexico.

Headquartered in Monterrey, Acosta Verde has developed 35 retail properties since 1992 and currently manages 26 shopping centers, of which it owns 11. The Company’s portfolio is known for its high quality and comprises 160,370 square meters (approximately 1.7 million square feet) across 15 states. Acosta Verde created the Sendero concept, one of the most widely recognized shopping center brands in Mexico targeted to middle-class consumers. The Sendero concept is characterized by a uniform design across all properties; key anchor relationships with Soriana, the second largest Mexican retailer, and Cinépolis, the second largest movie theater chain in the world; a diversified tenant base; and typically high occupancy rates.

“EI was an early investor in Mexican retail property, and we are pleased to return in partnership with a distinguished group of global investors who share our vision,” said Tom Heneghan, EI’s chief executive officer. “Acosta Verde is well positioned to deploy capital with an experienced management team and a proven, scalable concept.”

Growing consumer purchasing power in Mexico is driving an increase in the gross leasable area of shopping centers across the country. The retail landscape in Mexico is shifting from predominantly small informal, individual storefront operations to more specialized retail, propelled by consumer demand and expectations for quality and price competitiveness. Market studies indicate that only 20% of Mexico’s retail sales occur in shopping malls, as compared to 56% in the United States. In addition, consumption trends in Mexico have favorably impacted economic growth, representing nearly 80% of GDP in total. Personal disposable income in Mexico reached 73% of GDP in 2013, the second highest in the region and a significant factor driving consumerism along with stable wage growth.

“This new relationship is a perfect match for Acosta Verde’s future. The strength of our brand, people and business model will benefit from this new growth capital and from EI’s experience. We are honored to have institutional investors such as EI, BlackRock and Altan Capital,” said Arq. Jesus Acosta Verde, chief executive officer of Acosta Verde.

The consortium joining EI includes participation from funds managed by BlackRock and Altan Capital, among others. EI’s Tom Heneghan and Cliff Payne will join the Company’s Board of Directors.