André Freitas, CEO & CIO of Hedge Brasil Shopping FII (BVS: HGBS11), sat down for a video interview during Nareit’s REITweek: 2025 Investor Conference in New York City on June 2-5.
Freitas discussed evolving investment trends and strategic shifts within Brazil’s retail real estate sector. He explained that although foreign investment had slowed due to high interest rates and currency volatility, the tide was turning. “We are starting to see the foreign investor coming again,” Freitas said, noting nearly $4 billion in recent inflows into equities.
Freitas emphasized a significant shift in mall operations from retail-centric to entertainment-driven experiences, especially in São Paulo. “I would say that this is the big shift we have seen…now it’s much more entertainment than really selling goods,” he said.
He also highlighted the importance of cinema traffic and parking revenue in overall mall performance, suggesting a recent uptick in demand. Looking ahead, Freitas pointed to years of renovations over new builds as a long-term strategy now poised to bear fruit, with expectations for rising NOI between 2025 and 2027.