Two giants are joining forces to create a colossus in the real estate investment trust (REIT) sector focused on shopping centers. On one side, Allos , with 45 shopping malls, 1.93 million square meters of leasable area, and R$ 2.7 billion in revenue in 2025. On the other, Kinea Investimentos , an asset manager that is a partner of Itaú, with R$ 150 billion under management, of which R$ 40 billion are in REITs.
The companies have just signed a Memorandum of Understanding (MOU) to create the Kinea ALLOS Malls FII real estate fund, which will be jointly managed and may raise between R$789.5 million and R$1.97 billion. In practice, under the terms of the agreement, Allos and Kinea are establishing a partnership to manage funds in the shopping mall sector.
“Kinea was the most obvious partner for us to become partners with,” says Rafael Sales, CEO of Allos, to NeoFeed . “Firstly, because we share the same values, long-term vision, and impeccable reputation with investors. And also because, in addition to being a giant in real estate funds, it didn't operate in shopping malls.”
Carlos Martins, partner at Kinea and manager of real estate equity funds, agrees on the synergies between both companies. “We are very active in real estate funds focused on credit, offices, logistics, and residential properties. And we were always asked why we didn't have a shopping mall vertical,” Martins tells NeoFeed . The reality is that we lacked a partner who knew how to operate in that area.
“Unlike residential, logistics, and office buildings, where we buy 100% and operate, shopping malls go beyond real estate. It's almost a retail operation; it's very dynamic,” says Martins. Allos, as the largest shopping mall company in Brazil, is able to fill this gap.
“In our agreement, any investment management deal involving shopping centers or assets related to shopping centers, Allos is bound to do with Kinea and Kinea is bound to do with Allos,” says Sales. But this does not prevent Allos from selling its assets to other funds, as long as the clauses agreed upon in the contract are respected.
In this first REIT, the capital raised will be used to purchase more mature Allos assets at a cap rate of 9.5%. These properties are trophy assets of the network, and the stakes will depend on the size of the capital raising. What's on the table is a projection of what could be acquired.
These are stakes ranging from 49% to 100% in Shopping Metrô Santa Cruz; 65% in Caxias Shopping; from 4.5% to 53% in Bangu Shopping; from 12% to 40% in Shopping Parangaba; from 11% to 50.1% in Plaza Sul Shopping; from 10% to 12% in Shopping Villa-Lobos; and from 5% to 15% in Shopping Tamboré.
Allos will receive 80% upfront, partly in cash and partly in shares totaling 24% of the fund. The remaining 20% will be paid in three installments 24, 36, and 48 months after the settlement of the offer. With the money in hand, the company can use it to reduce debt, make M&As, or pay dividends.
“But we’ll decide that later, when we raise the capital,” says Sales. “The important thing is that it’s an opportunity to create a new growth front and capital allocation.”
More than just putting a large amount of money in the bank, which provides greater flexibility to the balance sheet, Allos is opening a new vertical of recurring income and liquidity businesses. “We are increasingly realizing that real estate investment trusts (REITs) have a tax, structural, and consistent advantage,” says Sales. “It’s a structurally strong market in Brazil, with an ever-growing investor base, both individuals and institutions.”
Rafael Sales, CEO of Allos, has been building the agreement for months (Photo: ALLOS Press Release/Claudio Belli)
The idea is to turn this fund into a recurring revenue source for Allos and make it one of the largest shopping mall funds in Brazil. "We can reach R$10 billion, R$20 billion in the future," says Martins, from Kinea. He affirms that the fund's strategic decisions "will be made jointly," and assets that don't necessarily belong to Allos could be included in the fund.
“What can make the fund grow, in addition to the shopping malls that are already given away, are eventually acquisitions of portfolios from, for example, institutional investors who own shopping malls and who feel more comfortable being partners in a fund managed by Kinea and Allos,” says Sales.
In this case, these investors would receive shares of the REIT in exchange for their stakes in shopping malls. This will allow the fund to grow and also offer liquidity to investors who may eventually want to exit the investment. After all, a REIT is traded on the market. "For example, there are pension funds in Brazil that have a direct stake in shopping malls," says Sales.
Allos and Kinea have an exclusivity agreement until December 31st of this year to complete the transaction. For the shopping mall company, the deal opens another avenue for raising capital, in addition to equity and debt. On Thursday, April 9th, Allos' stock closed the trading session valued at R$ 32.29, and its market capitalization reached R$ 16.1 billion.
Analysts at Santander see great potential for appreciation in the company and recently presented a target price of R$ 38.50 for the stock in 2026, recommending a buy.
“Our positive outlook is supported by a high dividend yield of 12% for 2026; and an attractive valuation, with the stock trading at a multiple of 9.8x AFFO (the metric that shows the cleanest results of companies in the sector) versus the historical average of 13.9x,” the analysts said.
