Equity International Announces Sale of BR Malls Shares

Equity International (EI), the privately held investment company focused on real estate-related businesses operating outside of the United States, announced today the sale of approximately 2.75 million shares of BR Malls (Bovespa:BRML3), a publicly traded retail property company in Brazil. The proceeds from the sale were used to retire 100 percent of the debt connected with EI’s original investment in the Company in December 2006.

Equity International sold less than 10 percent of its stake in BR Malls and, following the transaction, its ownership interest is approximately 17.7 percent. This transaction, through EI’s Fund II, was executed with the sole purpose of retiring high-cost debt maturing in June 2009. Equity International does not utilize leverage at the fund level as a policy matter, however in this case an exception was necessitated due to the size of the investment opportunity.

Headquartered in Rio de Janeiro, BR Malls is the largest shopping mall company in Brazil. It is the most diversified retail property company both in terms of geography and coverage of income sectors. Since EI’s original 2006 investment, the Company has grown its portfolio from 7 to 34 shopping malls, representing nearly 1 million square meters of gross leasable area.

"Equity International remains an active and enthusiastic shareholder of BR Malls, and we look forward to capitalizing on opportunities in the Brazilian retail sector,” said Gary Garrabrant, EI’s chief executive officer. From a global perspective, Brazil remains under-supplied in the retail sector on a per capita basis, and the continued expansion of the country’s middle class will drive near- and long-term retail growth. Retail sales in Brazil remain strong, with sales outpacing the U.S. and other developed markets by a wide margin in spite of slowing economic conditions. Industry competition is limited and generally capital-constrained.

"We foresee significant growth opportunities for the Company both organically, through expansion and new development, and externally, through corporate combinations and property-level acquisitions,” noted Mr. Garrabrant. "Uniquely, the Brazilian retail property sector is characterized by strong growth as well as industry consolidation. We believe the Company’s platform positions BR Malls exceptionally well to capitalize on these opportunities.” BR Malls completed its Bovespa initial public offering in April 2007 which generated R$657 million for the Company.

Equity International provides ongoing strategic direction and counsel to BR Malls in addition to tactical contributions. Thomas McDonald, EI’s chief strategic officer, continues to serve as a member of the Company’s Board of Directors.

About Equity International

Equity International is a privately held investment company focused exclusively on real estate-related businesses operating outside of the United States. Founded in 1999 by Sam Zell and Gary Garrabrant, Equity International is recognized as a leading international investor and partner of choice with multi-dimensional capability. With $1.5 billion raised through a series of four funds and invested across 18 portfolio companies to-date, Equity International’s presence spans the globe and the real estate spectrum. For more information, please visit www.equityinternational.com.