Gazit Brasil Asset Management

Gazit Brasil Asset Management is the Brazilian subsidiary of the Israeli group G-City (TASE: GCT), one of the largest global shopping mall platforms, with about 90 properties and 1.9 million m² of leasable area across 12 countries. In Brazil since 2007, the manager has between R$ 2.7 billion and R$ 2.9 billion under management — entirely concentrated in GZIT11 (Gazit Malls FII), its only public vehicle, launched in March 2018.

Track record and governance

The Brazilian trajectory has been marked by significant capital movements. In 2023, the group divested stakes in Shopping Cidade Jardim (R$ 560 mi to JHSF) and Eldorado (R$ 93 mi), signaling the capacity to monetize mature assets. The GZIT11 fund, in turn, generated a cash profit of R$ 116.7 million in 2025 — a 27% growth over the previous year. The real estate management of the malls is executed by Gazit Corporate, a specialized arm of the group responsible for over 800 stores. Fiduciary administration is conducted by BTG Pactual. The alignment of interests is structural: FIM Norstar (a G-City group vehicle) holds Class B shares, compensated only if the result exceeds R$ 9.36/share per year — a mechanism that reduces agency conflict and anchors the controller. Relevant risk: intra-group transactions (Gazit Corporate manages the malls and is a subsidiary of the same controller), requiring attention to market conditions in these operations.

Strategy and funds under management

Gazit Brasil Asset Management operates with a single-product focus in the segment of regional and neighborhood shopping malls in the state of São Paulo. GZIT11 brings together five assets — Internacional Shopping (Guarulhos), Morumbi Town, Shopping Light, Mais Shopping, and Prado Boulevard (Campinas) — totaling ~142 thousand m² of GLA and positioning in dense markets of Brazil's largest regional economy. In 2026, the manager revealed strategic expansion: it began offering commercial management for third-party malls, inaugurating the model with TriMais Places (37 thousand m² of GLA, Tucuruvi/SP). CEO Mia Stark positioned Gazit Brasil as a "commercial intelligence platform", opening a new revenue source without the need for proprietary capital injection. In GZIT11, the 2026-2027 cycle is dominated by the retrofit of Internacional Guarulhos, financed by the 8th issuance of R$ 70 mi, with NOI maturation expected for 2027.

Strengths and points of attention

• Solid international backing: integration with the G-City group provides access to capital, complex portfolio management know-how, and a history of large-scale transactions in Brazil.
• Structural alignment of the controller: lock-up and Class B remuneration mechanism create a real incentive to generate results for minority shareholders.
• Proven result growth: +27% cash profit in 2025 demonstrates real operational traction, not just guidance.
• Business model expansion: third-party management opens revenue leverage utilizing the existing structure.

• Extreme concentration: 100% of public AUM in a single fund (GZIT11) — without product or managed strategy diversification.
• Capex execution risk 2026-2027: the retrofit of Internacional Guarulhos is the fund's central thesis; delays or costs above plan put pressure on DPS and P/BV.
• Leverage: IPCA+5.89% CRI of R$ 817 mi (LTV ~40%) exposes the portfolio to high real interest rate scenarios.
• Potential agency conflict: intra-group real estate management (Gazit Corporate) requires monitoring of contractual conditions by the unitholder.

For which investor does it make sense

GZIT11 — and by extension Gazit Brasil Asset Management — is indicated for investors with a 2-3 year horizon, tolerance for leverage, and willingness to assume execution risk in exchange for a book value discount (P/BV ~0.47). The current DY of 10.5% compensates for the wait; the value thesis comes from post-retrofit normalization. What to watch: NOI evolution of Internacional Guarulhos, CRI amortization schedule, and the conditions of Gazit Corporate's intra-group hiring. Investors averse to concentration risk or leverage should evaluate other mall platforms with more diversified portfolios.