p12 p24 p34 p44 - Sonae Sierra

2007 

IN REVIEW 

INNOVATIVE SPIRITED MODERN

INNOVATIVE SPIRITED MODERN 

2 CEO’s Statement 

4 Our organisational structure 

6 Our partnerships past and present 

8 The year in numbers 

10 A year of achievements 

12 Sierra Investments 

24 Sierra Developments 

34 Sierra Management 

44 Sonae Sierra Brazil 

54 Sonae Sierra Consolidated Accounts 

58 Corporate Responsibility 

62 Board of Directors 

64 Other Executives 

66 Our Future 

Front cover: Alexa, Berlin, Germany

FOR US, SHOPPING AND LEISURE ARE INDIVISIBLE. 

WE ARE AS PASSIONATE ABOUT INNOVATIVE IDEAS 

FOR THEIR DEVELOPMENT AND MANAGEMENT AS 

WE ARE COMMITTED TO THE SUSTAINABILITY OF 

EVERY CENTRE WE CREATE. 

THROUGH A UNIQUE COMBINATION OF CREATIVE 

ENERGY, IMAGINATION AND PRACTICALITY, WE 

NOT ONLY DEVELOP AND MANAGE EXCEPTIONAL 

RETAIL PROPERTY SOLUTIONS THAT PROVIDE 

STIMULATING SHOPPING AND LEISURE SPACES 

FOR OUR TENANTS, THEIR CUSTOMERS AND 

THE COMMUNITIES WE SERVE, WE ALSO 

DELIVER REWARDING RESULTS FOR OUR 

INVESTORS AND PARTNERS. 

1 

SONAE SIERRA In Review 2007

CEO’s Statement 

Álvaro Portela 

Chief Executive Officer 

2007 was a very good year for Sonae Sierra. We not only 

achieved record profits, we also broke new ground by expanding 

into new territory – Romania – where we have added three new 

assets to our portfolio. 

The increase in our profitability is due in no small measure to the 

inspirational hard work and dedication of our team. Working in 

sometimes difficult conditions and circumstances, they have 

sustained our steady progress towards our goal of becoming a 

€2 billion NAV company by 2009. At the end a year with two 

distinct halves – one of buoyant confidence in the two quarters 

prior to the US sub-prime crisis and one of some uncertainty over 

the following six months – our total net profits stood at €300 

million and our NAV had increased by 15% to €1,713 million. 

Now, as an alternative way of expressing our growth, we are 

seeking to improve the Open Market Value (OMV) of the 

properties we are responsible for, which stood at €6 billion in 

2007, to €12 billion by the end of 2012. Achieving this will 

enhance our standing as asset managers and make it possible for 

us to increase our share of the asset management market. 

New operational territory 

After six years without any geographical expansion, 2007 saw us 

enter the Romanian market. 

We have made a good beginning in this new territory by adding 

three new assets to our portfolio. We have acquired one 

operating shopping centre, River Plaza Mall in Ramnicu Valcea, 

170 km from Bucharest, and we are already building another 

new shopping centre in Craiova, 240 kms west of the capital. 

This centre will have a Gross Lettable Area (GLA) of over 

55,000m 2. We are making progress with the development of our 

third asset, an innovative centre in the city of Ploiesti, which will 

have a GLA of some 64,000m 2. In total, these two new 

developments represent an investment of €293 million. 

We see Romania as a very promising market. The country has many 

large cities, which already feature shopping centres, and there are 

good forecasts for the country’s continuing economic growth as the 

government encourages the development of a free market. 

We will continue to explore other territories but, as with 

Romania, we will only enter any new market when we have 

identified the right opportunities. 

New centre openings 

As well as breaking new ground in Romania, we have opened a 

number of new centres in our established markets. 

The most exciting of these is Alexa, in Berlin, a development we 

shared with Fonciére Euris, which opened in September with 178 

shops in a GLA of 56,200m 2. On the inauguration day, we had to 

have police on crowd control duty, and customers had to be 

asked to wait in line, because their numbers were so great. Since 

then Alexa has grown in popularity, with more than 5.2 million 

visits in just three-and-a-half months. I believe this bodes well for 

the opening of our other new centre in Germany, Loop5. 

Many of our competitors and current and potential investors 

were eager to see how our first German centre would perform. 

Alexa has proved that our style of product is popular outside our 

traditional southern Europe territory, which gives us 

encouragement for the future. 

Of the other new openings, 8ª Avenida in the Portuguese city of 

S. João da Madeira, is a €54.3 million investment with 130 shops 

in a GLA of 30,477m 2, while El Rosal in Ponferrada, Spain, is a 

€111 million investment between ourselves and the Mall Group, 

which has 147 shops in a GLA of 49,500m 2. 

Developments and renovations 

Our development pipeline remains robust, with new projects in 

Portugal, Spain, Italy, Germany, Greece, Romania and Brazil. 

In every case, our plan is to offer a Sierra concept of shopping and 

leisure which combines shopping with an element of fun. This is in 

line with our belief that shopping is not just an economic activity 

but also something which people can enjoy as a leisure pursuit. 

In addition to our new developments, we are continuing with our 

programme of renovation, including the refurbishment of Valecenter 

in Italy, which opened some 15 years ago and, over time, has been 

SONAE SIERRA In Review 2007 2

“WE ARE SEEKING TO IMPROVE THE OPEN 

MARKET VALUE OF THE PROPERTIES WE 

ARE RESPONSIBLE FOR TO €12 BILLION BY 

THE END OF 2012.” 

transformed. Originally one of the least appealing centres one might 

see anywhere, it is now an attractive destination that is popular with 

the people living in and around Marcon, near Venice. 

After several years, we have finally been able to start the 

construction of the first of the two office towers that formed part 

of the original designs for the Centro Colombo in Lisbon. Our 

activities have become more focused since this project was first 

designed, and we will be seeking to dispose of our share of the 

completed towers, now reduced to 25%, through a commercial 

property specialist with an interest in office space. 

Similarly, our sale of Lima Retail Park reflects our sharpened 

shopping centre focus and our view that – once completed – 

retail parks offer us little opportunity for adding to their value. 

Rewards for excellence 

Last year we were pleased to have won a number of awards. 

This year we have done even better. 

In October we were presented with an award as the best 

company operating in the European shopping centre sector. We 

first received this accolade, which is presented by the UK real 

estate magazine, “Property Week”, and its German counterpart, 

“Immobilien Zeitung”, in 2005. It is particularly pleasing to have 

succeeded twice. 

Equally satisfying was our winning of a Dupont Safety Award for 

our Personæ project. This ground-breaking safety & health 

programme focuses on the need to create a culture of accident 

anticipation and prevention at all our centres. Its aim is to build 

on the involvement of everyone working in our centres – tenants 

and our own staff alike – so that neither we nor our stakeholders 

have to rely solely on the work of a team of safety professionals. 

In July we won the Elite Lombard Award for the best retail 

strategy in Italy. This award is given to institutions, companies and 

top managers who, over the course of the year, have attained 

special achievements in various areas of real estate development. 

It was particularly pleasing to win this, because it shows the value 

of our consistent commitment to innovation and quality in all 

that we do. 

3 

Earlier in the year we had won the first-ever ReSource Award, 

created by the International Council of Shopping Centres (ICSC) 

Europe for the sole purpose of distinguishing a developer, project, 

manager or tenant who, in the ICSC’s opinion, consistently takes 

a long-term view of sustainability. It was gratifying to hear the 

President of the Jury, Stephen Pragnell, highlight two of our most 

recent developments as “excellent examples of the high level of 

innovation and quality the company has developed with the 

purpose of reaching profitability and sustainability for each of its 

shopping centres”. 

As a reflection of our commitment to sustainability and 

environmental efficiency, our objective is to obtain ISO 14001 

certification for all the shopping centres we own, as well as for 

the construction of all the centres we develop. 

The year ahead 

Last year I was able to announce our new partnership in Brazil with 

Developers Diversified Realty, which I am pleased to report is 

progressing well. This year we have consolidated our partnership 

with the German investment house, Deka, through the sale of 50% 

of LoureShopping, and we shall seek other similar liaisons over time. 

We also reinforced our partnership with Rockspring with the 

development of Pantheon Plaza, a new project in Larissa, Greece. 

At the beginning of 2008, events in the investment sector suggest 

that the climate for borrowing may become a little difficult over the 

course of the year. However, we expect consumer confidence to 

provide limited growth in Portugal, Italy and German, more robust 

growth in Greece and Spain, and stronger growth in Romania. 

As a result, we have every reason to look forward to another 

profitable period as we seek to attain our long-term goals. 




OUR FOUR-PART ORGANISATIONAL STRUCTURE 

REFLECTS OUR THREE MAIN BUSINESS AREAS – 

EUROPEAN SHOPPING AND LEISURE CENTRE 

OWNERSHIP, DEVELOPMENT AND MANAGEMENT 

– AND OUR ACTIVITIES IN BRAZIL. 

Our organisational structure 

Portugal 

Spain 

Italy 

Germany 

Greece 

Romania 

SIERRA INVESTMENTS 

Owns Sonae Sierra’s assets, 

provides its asset management 

services and is responsible for 

our investments in Europe. 

Also holds our share of the 

Sierra Funds’ equity and acts as 

asset manager for the Funds. 

SEE PAGE 12 

* 

Sierra 

Funds 


Investments 

Portugal 

Spain 

Italy 

Germany 

Greece 

Romania 


Corporate 

Services* 


Developments 

SIERRA DEVELOPMENTS 

Responsible for the 

development of our shopping 

and leisure centres in Europe. 

Activities include all aspects of 

procurement, conceptual 

development, architectural 

design and construction 

management. 

SEE PAGE 24 

Sonae 



Management 

Portugal 

Spain 

Italy 

Germany 

Greece 

Romania 

Sonae Sierra 

Brazil 

SIERRA MANAGEMENT 

Investment 

Responsible for all aspects of 

the property management of 

our European shopping and 

leisure centres, including those 

owned by Sierra Investments 

and other third parties. 

SEE PAGE 34 

Sierra Corporate Services provides a comprehensive portfolio of financial, legal, human resources, environmental, 

communications, safety & health, and back-office services that support our operations. 

Development 

SONAE SIERRA In Review 2007 4 

Management 

SONAE SIERRA BRAZIL 

Operates autonomously, 

investing in, developing and 

managing a growing number 

of shopping and leisure centres 

in Brazil. 

SEE PAGE 44

COUNTRIES OF OPERATION 

5 

Portugal 

Italy 

Brazil 

Spain 

Germany 

Greece 

Romania 


OUR AIM IS TO DEVELOP LONG-TERM 

RELATIONSHIPS WITH LIKE-MINDED 

ORGANISATIONS WHO SEE US AS THEIR 

PARTNER OF CHOICE IN THE SHOPPING 

AND LEISURE SECTOR. 

Our partnerships past and present 

France 

CNP Assurances CDC 

Foncière Euris Ecureuil Vie 

Netherlands 

ING Real Estate ABP 

Germany 

Deka 

Greece 

Charagionis Group Lamda Development 

United Kingdom 

Grosvenor Fund Management 

Miller Developments 

Castle City 


27 PARTNERS FROM 

Rockspring

Portugal 

Estevão Neves 

7 

NSL Group 

Sonae Distribuição Estação Shopping 

10 COUNTRIES 

Spain 

Mall Group 

Eroski Group 

LAR Group 

Italy 

Coimpredil 

Brazil 

USA 

AIG 

DDR 

TIAA- CREF 

Multiplan Tivoli EP 

Enplanta Engenharia 


IN A YEAR WHEN PROFITS ACHIEVED RECORD 

LEVELS, WE ALSO REINFORCED THE ASSET 

VALUE OF OUR PORTFOLIO WITH THE ENTRY 

OF SEVEN NEW OPERATING CENTRES. 

The year in numbers 

NOI of 

€156.2 

million (+4.8%) 

€6,154 

OMV of Assets under Management (€ million) 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

8,162 

Number of tenant contracts under management 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

NAV per share 

€52.69 

(+15%) 

OMV of 

€6,154 

million (+30.2%) 


€m 

6,154 

4,721 

4,090 

3,335 

2,861 

2,569 

1,940 

No. 

8,162 

7,293 

7,166 

6,134 

5,399 

5,089 

3,949 

€300.1 

Consolidated Net Profit – IAS (€ million) 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

€156.2 

Consolidated Net Operating Income – IAS (€ million) 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

€m 

300.1 

270.6 

219.5 

126.8 

249.1 

144.5 

120.5 

€m 

156.2 

149.0 

125.7 

107.6 

98.1 

95.5 

73.8

€1,713m 

Real Estate Net Asset Value as of 31 December (€ million) 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

1,855 

GLA owned in operating centres (000’s m 2) 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

9 

€m 

1,713 

1,490 

1,265 

1,060 

948 

1,037 

934 

m 2 

1,855 

1,660 

1,586 

1,362 

1,203 

1,140 

790 

€52.69 

Real Estate Net Asset Value as of 31 December per share (€) 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

2,183 

GLA under management (000’s m 2) 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

SONAE SIERRA In Review 2007 

€ 

52.69 

45.82 

38.90 

32.60 

29.16 

27.67 

24.9 

m 2 

2,183 

2,001 

2,025 

1,839 

1,564 

1,517 

1,128

2007 WAS AN EXCEPTIONAL YEAR FOR SONAE 

SIERRA. NOT ONLY DID WE START OPERATIONS 

IN ROMANIA AND OPEN FOUR NEW CENTRES 

ELSEWHERE IN EUROPE, WE ALSO ACHIEVED 

RECORD PROFITS OF €300 MILLION. 

A year of achievements 

2007 was a significant year for 

Sonae Sierra, with entry into 

the Romanian market and the 

inauguration of four new 

shopping centres. 

We strengthened our partnerships 

in Europe and have increased 

our holdings in three assets 

in Brazil. 

We are on course to achieve our 

goal of becoming a €2 billion 

NAV company by 2009. 

MARCH 

Sonae Sierra’s brand value increased 

by 44% to €566 million since the 

company’s new brand launch in 2004. 

MAY 

Sonae Sierra enters the Romanian 

market with the €42 million 

acquisition of the River Plaza Mall in 

Ramnicu Valcea, 170 km from the 

capital, Bucharest. 

SEPTEMBER 

The company’s first new centre in 

Germany – Alexa in Berlin – opens to 

massive acclaim from tenants and 

their customers. 

DECEMBER 

A new partnership with German 

fund manager Deka Immobilien 

Investment was done trough the 

sale to them of 50% of 

LoureShopping in Portugal. 


2007 WAS ALSO A YEAR IN WHICH WE HAVE 

INTERNATIONAL RECOGNITION FOR THE WAY 

WE MANAGE OUR BUSINESS. 

In October we were presented with an award from “Property Week” and 

“Immobilien Zeitung” as the best company in the European shopping centre sector. 

In the same month we won a Dupont Safety Award for Personæ, our groundbreaking 

safety & health programme. 

SIERRA 

INVESTMENTS 

2007 was another active 

year for Sierra Investments. 

We acquired a total of seven 

investments bringing the 

NAV of our portfolio to 

€1,713 million. 

• Acquired first operating 

shopping centre in Romania. 

• Acquired two new centres 

in Germany. 

• Strengthened our position 

in Spain. 

• Acquired new assets in 

Portugal. 

11 

SIERRA 

DEVELOPMENTS 

A competitive year in which we 

made good progress with 

developments in our traditional 

markets and began operations 

in a new one: Romania. 

• Started work on two new 

developments in Romania. 

• Opened four new shopping 

centres in Europe. 

• Four centres due to open 

in 2008. 

• 7 more under development 

and 13 new projects in 

different phases of 

completion. 

SIERRA 

MANAGEMENT 

A year of steady progress with 

a satisfactory performance from 

an enlarged portfolio in our 

core markets. New ventures 

started in Romania. 

• Began management of two 

centres in Germany. 

• Took over management of 

two centres in Romania. 

• Enlarged portfolio in Iberia. 

• Steady progress in Italy and 

Greece. 

SONAE SIERRA 

BRAZIL 

2007 was a year of 

consolidation in Brazil. We 

increased our holdings in three 

of our existing shopping 

centres and have started work 

on a new centre in Manaus. 

• Increased holdings in three 

São Paulo shopping centres. 

• Started construction of 

first-ever centre in Manaus. 

• Awarded first-ever 

ISO 14001 accreditation 

for a shopping centre 

in Brazil. 

p12 p24 p34 p44 


SIERRA INVESTMENTS OWNS THE COMPANY’S 

SHOPPING CENTRE ASSETS AND MANAGES ITS 

EUROPEAN INVESTMENT BUSINESS. 

SIERRA 

INVESTMENTS 

14 

21 

22 

Performance 2007 

The Sierra Fund in 2007 

Financial Report 2007 


Our core business activities 

Sierra Investments’ prime objective is to increase the asset value of all the 

company's shopping and leisure centres. 

The division is also becoming increasingly involved in managing thirdparty 

interests through the creation of real estate funds, and intends to 

devote more resources to the development of this new business. 

Sierra Investments’ principal contribution to Sonae Sierra's results is 

derived from a combination of rental income and the rising market values 

of the shopping centres it owns. Sierra Asset Management, a company 

within Sierra Investments, also provides income-producing asset 

management services to the third party investors in these properties. 

Acting on behalf of the company, the division takes a long-term view, 

investing in assets developed by Sierra Developments as well as 

established centres acquired from third parties for their potential increase 

in value. 

Sierra Investments holds 50.1% of the Sierra Fund, thus maintaining its 

position as co-owner and manager of the Fund's underlying assets. 

Sierra Investments in 2007 

Sonae Sierra’s entry into the Romanian market was an important 

milestone for Sierra Investments. The successful acquisition of the River 

Plaza Mall in Ramnicu Valcea has allowed us to begin operating in 

Romania with a brand new asset that will give us a good understanding 

of the country’s retail market and a sound base for the future. We look 

forward to acquiring the centres under development in Craiova and 

Ploiesti in due course. 

Aside from our entry in this new territory, one of the major highlights of 

the year was our acquisition of two new centres in Germany: Münster 

Arkaden near Dortmund, for the Sierra Fund, and – from Sierra 

Developments – the Alexa shopping and leisure centre in Berlin, which 

was inaugurated in September. The introduction of these two popular 

destinations into our portfolio will be followed by our future acquisition 

of Loop5 at Weiterstadt near Frankfurt. This is scheduled for 2009. 

During 2007 we strengthened our position in Spain through the 

acquisition of El Rosal, a shopping and leisure centre serving Ponferrada 

and the surrounding area. 

13 

Ana Guedes Oliveira 

Sonae Sierra, Executive Director, 

Investment and Asset Management, Europe 

Acquisition of River Plaza Mall in 

Ramnicu Valcea, Romania 

Acquisition of two new centres in 

Germany: Münster Arkaden and Alexa 

Acquisition of Modelo de Albufeira 

and Continente de Portimão, in 

Algarve, Portugal 

Acquisition of the 50% interest in 

GaiaShopping and the expanded 

ArrábidaShopping held by our original 

investment partners, and acquisition of 

8ª Avenida, all in Portugal 

Acquisition of El Rosal, in 

Ponferrada, Spain 

Sale of a 50% interest in 

LoureShopping in the Lisbon area to 

Deka Immobilien Investment 



In Portugal, we acquired 50% of two assets in Porto, 

GaiaShopping and the expanded ArrábidaShopping from our 

original investment partners, and acquired 8ª Avenida in S. João 

da Madeira from Sierra Developments. We have also started the 

construction of the first of the two office towers at the Colombo 

Centre in Lisbon, where we have a 25% share. 

In Italy, following the completion of its refurbishment, we 

celebrated the opening of the expansion of the Valecenter in 

Marcon near Venice. 

In a move designed to strengthen our links with German 

partners, we also sold 50% of LoureShopping to Deka 

Immobilien Investment at the end of 2007. 

Rents 

Fixed rents Variable rents Total rents % 07/06 rents 

2007 2006 2007 2006 2007 2006 total like-for-like 

Portugal 177,177 166,772 8,633 8,435 185,810 175,207 6.1% 3.9% 

Spain 65,790 64,642 3,543 3,384 69,333 68,026 1.9% 0.4% 

Italy 6,180 6,901 43 – 6,223 6,901 -9.8% -4.3% 

Greece 14,647 12,353 1,706 994 16,353 13,346 22.5% 22.5% 

Germany 9,270 – 199 – 9,469 – 100.0% – 

Romania 1,572 – – – 1,572 – 100.0% – 

Total 274,637 250,669 14,124 12,812 288,761 263,481 9.6% 5.3% 

Figures in Euro (thousands) 

Sales 

Sales % 07/06 sales 

2007 2006 total like-for-like 

Portugal 2,176,112 2,029,478 7.2% 5.9% 

Spain 904,740 828,284 9.2% 5.9% 

Italy 45,638 42,281 7.9% -16.3% 

Greece 164,061 118,779 38.1% 38.1% 

Germany 182,041 – 100.0% – 

Romania – – – – 

Total 3,472,592 3,018,821 15.0% 10.3% 


Rental income and property values 

In 2007, total rents from Sierra Investment’s owned portfolio 

increased by €25.3 million over the previous year – a 10% 

improvement or 5.3% on a like-for-like basis. This increase was 

achieved through organic (like-for-like) growth and acquisitions, 

both from Sierra Developments and from third parties. Turnover 

rents were 5.1% of total fixed rents. 

Following standard industry practice, we assess the performance 

of our properties through the growth of their market value. 

When compared with 2006, the increase in the valuation of our 

operating properties is €963 million. This increase is partly a result 

of the general decrease in exit yields of our existing shopping 

centres and their good operational performance, but also from 

the growth in our portfolio arising from the addition of seven 

new properties during 2007. 

Occupancy Rate 


2007 2006 

Portugal 97% 98% 

Spain 94% 96% 

Italy 87% 79% 

Greece 100% 98% 

Germany 99% – 

Romania 100% –

Open Market Value Figures in Euro (thousands) 

Shopping Centres in Operation % Sierra * Open Market Value OMV Variation OMV Variation 

31 Dec. 2007 31 Dec. 2007 31 Dec. 2006 Total % 

AlgarveShopping 100% 157,989 140,176 17,813 13% 

ArrábidaShopping (3) 100% 179,032 73,926 105,107 142% 

CascaiShopping 50% 191,233 169,286 21,947 13% 

Centro Colombo 50% 408,756 361,250 47,506 13% 

Ocidente Tower (5) 25% 1,801 – 1,801 – 

Oriente Tower (5) 25% 1,577 – 1,577 – 

CoimbraShopping 100% 35,120 35,025 95 – 

GaiaShopping (3) 100% 185,431 81,632 103,800 127% 

GuimarãeShopping 100% 49,730 46,243 3,487 8% 

LoureShopping (4) 50% 65,362 119,205 -53,843 -45% 

MadeiraShopping 50% 40,263 38,549 1,714 4% 

MaiaShopping 100% 60,827 57,555 3,272 6% 

NorteShopping 50% 213,422 188,233 25,189 13% 

Parque Atlântico 50% 37,382 37,044 338 1% 

Estação Viana 100% 86,979 82,167 4,812 6% 

Centro Vasco da Gama 50% 156,940 137,952 18,988 14% 

ViaCatarina 50% 34,349 35,854 -1,506 -4% 

Serra Shopping 50% 23,589 22,426 1,163 5% 

RioSul Shopping 50% 58,279 55,516 2,763 5% 

CC Modelo de Albufeira (2) 50% 7,001 – 7,001 – 

CC Continente de Portimão (2) 50% 11,804 – 11,804 – 

8ª Avenida (1) 100% 71,485 – 71,485 – 

Total Portugal 2,078,347 1,682,036 396,310 24% 

Grancasa 50% 100,507 89,734 10,774 12% 

Max Center 50% 90,585 87,491 3,094 4% 

Valle Real 50% 49,574 48,128 1,446 3% 

La Farga 50% 31,674 29,949 1,725 6% 

Avenida M40 100% 65,106 82,506 -17,400 -21% 

Dos Mares 100% 59,391 55,308 4,083 7% 

Luz Del Tajo 100% 106,904 102,295 4,609 5% 

Zubiarte 50% 41,600 43,826 -2,226 -5% 

Plaza Mayor 100% 78,853 81,721 -2,868 -4% 

Plaza Éboli 100% 57,994 56,702 1,292 2% 

Parque Principado 50% 95,555 88,966 6,589 7% 

El Rosal (1) 100% 131,930 – 131,930 – 

Total Spain 909,671 766,624 143,047 19% 

Valecenter 100% 149,868 116,159 33,709 29% 

Airone 100% 18,642 18,506 136 1% 

Total Italy 168,510 134,665 33,845 25% 

Mediterranean Cosmos 19.95% 31,421 29,682 1,739 6% 

Total Greece 31,421 29,682 1,739 6% 

Münster Arkaden (2) 100% 168,634 – 168,634 – 

Alexa (1) 50% 176,950 – 176,950 – 

Total Germany 345,584 – 345,584 – 

River Plaza Mall (2) 100% 42,703 – 42,703 – 

Total Romania 42,703 – 42,703 – 

Total 3,576,236 2,613,007 963,229 37% 

* In Centres owned by SIERRA Fund, it means control 

(1) Opening during 2007 

(2) New Acquisition – Operating Centre 

(3) Acquisition of 50% in 2007 

(4) Sale of 50% in 2007 

(5) Sale of 25% in 2007; in 2006 the OMV was included in Centro Colombo 

15 


Performance 2007 continued 

Retail market outlook 

The retail market outlook suggests that, despite some unrest in 

the financial markets in the last half of 2007and early 2008, our 

core activities will keep on expanding across our target markets. 

In Portugal, following the progress made in 2006, economic 

activity in 2007 kept on improving. Although unemployment is 

falling slowly and no fiscal easing is anticipated, investors’ interest 

shows no sign of waning. 2007 recorded an increase in 

investment activity, mainly due to strong investment demand for 

prime retail property and to domestic funds’ activity, pushing for 

additional compression in yields. 

In Spain, economic activity remained strong, although by the final 

quarter of 2007 it began to slow as the credit lines that have 

fuelled much of the country’s growth over the past started to dry 

up. In the shopping centre sector, following the growth in supply, 

greater competition in some specific areas and an easing in 

economic growth, we have seen a growing degree of polarisation 

between the best and worst centres. 

In Italy, the latter half of 2007 saw relatively strong growth rates, 

with the property market having another strong year overall. 

Although the economy looks set to decelerate, Italy remains one 

of the best performing markets in Europe, in terms of rental 

growth. Shopping centres yields have stabilised as retailers 

continue to absorb the several large schemes of recent years. 

Economic activity in Greece remains strong at around 4.0% of 

GDP growth, although it was slowing slightly in the second half 

of 2007, with consumer spending still an important driver. Yield 

compression movements continued as part of an increasing 

investment activity. The country remains a relatively small market 

but it is still expected to outperform the EU with an improving 

investment market supported by the number of schemes 

scheduled to be completed during 2008. 

2007 was a strong year for the German economy, with 

unemployment falling to its lowest level in 15 years. However, 

despite an improvement in the labour market, the consumer 

sector remained weak and retail sales saw negative growth 

towards the end of the year. Shopping centre yields compression 

remains the main performance driver. Bearing in mind the 

country’s limited number of shopping centres, opportunities may 

arise from improvements and active management. 

In Romania, the economy continues to grow at a steady pace – 

well above most EU markets – supported by thriving consumer 

demand. The improved market transparency and a significant 

increase in the quality of shopping centres has increased 

investors’ interest and contributed to a significant reduction of 

the yield gap between Romania and its European neighbours. 

Future prospects 

Our constant objective is to look for opportunities that will allow 

us to add value to our existing portfolio, either through the 

expansion or improvement of our shopping and leisure centres, 

or through the ongoing process of tenant renewal. 

As mentioned in the description of our core business activities, 

we are also aiming to increase our asset management business 

during the coming year, through the management of third 

parties’ assets. 

Overall, we expect 2008 to offer more opportunities for shopping 

and leisure centre acquisition than were available to us in 2007, 

when the market was ‘hot’ and property prices were high. While 

the debt markets may take a little while to recover from the crisis 

of late 2007 and early 2008, we anticipate a calmer period as the 

year unfolds. 


7 

5 

4 

1 2 3 

4 

Owned shopping 

centres GLA (m 2) 

8ª Avenida 

S. João da Madeira, Portugal 20,155 

AlgarveShopping 

Guia, Albufeira, Portugal 42,540 

ArrábidaShopping 

Vila Nova de Gaia, Porto, Portugal 54,652 

CascaiShopping 

Cascais, Lisboa, Portugal 73,525 

CC Continente de Portimão 

Portimão, Portugal 13,485 

CC Modelo de Albufeira 

Albufeira, Portugal 10,461 

Centro Colombo 

Lisboa, Portugal 119,771 

Centro Vasco da Gama 


CoimbraShopping 

Coimbra, Portugal 26,494 

Estação Viana 

Viana do Castelo, Portugal 18,556 

GaiaShopping 


GuimarãeShopping 

Guimarães, Portugal 26,830 

LoureShopping 

Loures, Portugal 38,986 

MadeiraShopping 

Funchal, Madeira, Portugal 26,700 

MaiaShopping 

Maia, Porto, Portugal 28,906 

NorteShopping 

Matosinhos, Porto, Portugal 73,122 

Parque Atlântico 

Ponta Delgada, Azores, Portugal 22,340 

RioSul Shopping 

Seixal, Portugal 44,406 

Serra Shopping 

Covilhã, Portugal 17,680 

ViaCatarina 

Porto, Portugal 11,656

3 

6 

2 

1 

5 

6 

Owned shopping 


Avenida M40 

Madrid, Spain 48,223 

Dos Mares 

San Javier, Murcia, Spain 24,776 

El Rosal 

Ponferrada, Spain 49,476 

Grancasa 

Zaragoza, Spain 77,378 

La Farga 

Barcelona, Spain 17,412 

Luz del Tajo 

Toledo, Spain 42,020 

Max Center 

Bilbao, Spain 59,362 

Parque Principado 

Oviedo, Spain 74,398 

Plaza Éboli 

Pinto, Madrid, Spain 31,068 

Plaza Mayor 

Málaga, Spain 34,359 

Valle Real 

Santander, Spain 47,825 

Zubiarte 


Airone 

Monselice, Padova, Italy 15,779 

Valecenter 

Marcon, Venice, Italy 58,152 

Alexa 

Berlin, Germany 56,445 

Münster Arkaden 

Münster, Germany 39,897 

Mediterranean Cosmos 

Thessalonica, Greece 45,956 

River Plaza Mall 

Ramnicu Valcea, Romania 11,953 

7

THE SIERRA FUND WAS ESTABLISHED IN 2003 WITH 

A TOTAL COMMITTED EQUITY OF €1.08 BILLION. 

SONAE SIERRA HOLDS 50.1% OF THE FUND AND 

SIERRA INVESTMENTS MANAGES ITS ASSETS. 

The Sierra Fund in 2007 

The objective of the Sierra Fund is to provide its investors with 

dividends and capital growth from investments in high quality, 

actively managed shopping centres in the Fund’s target markets 

of Portugal, Spain, Italy, Germany and Greece. 

Our five partner investors in the Fund are Stichting Pensioenfonds 

ABP of Holland, the French companies Caisse des Dépôts et 

Consignations EP, CNP Assurances and Ecureuil Vie, and TIAA- 

CREF which is based in the USA. 

The commitment of these international institutional investors not 

only validates the quality of Sonae Sierra's existing assets and 

development programme, but also provides new knowledge sources 

which will help Sonae Sierra improve its performance going forward. 

The Fund reported another very good year at the end of 2007, 

with the investors’ return reaching 28%. 

During the year, the acquisition of Münster Arkaden was formally 

concluded. 

The Fund also contributed to the expansion and refurbishment of 

ArrábidaShopping, with the second phase due to open in March 

2008, and to the refurbishments of Valecenter and Grancasa 

which were initiated and are expected to come to full fruition 

during the first half of 2008. The Fund also benefited from the 

expansion of MaiaShopping, concluded in October with the 

openings of C&A, Springfield and Women Secret. 

21 

The Sierra Portugal Fund 

In addition, in March 2008 we launched a new fund – the 

Sierra Portugal Fund (SPF) – which focuses on a diversified 

portfolio of high quality shopping centre assets located in 

Portugal. The acquisition of the 50% interest in GaiaShopping 

and ArrábidaShopping, formerly owned by our investment 

partners, is part of this strategy. These two centres form an 

essential part of the new Fund, which is seeded with eight 

shopping centres and also benefits from a pipeline of three 

projects currently being developed in Portugal. The Fund’s 

total equity is € 300 million, of which Sonae Sierra intends 

to hold an interest of 20%. 

Three reference investors have joined Sonae Sierra in the 

initial closing of the SPF with combined commitments of 

€120m: LGPI – Local Government Pensions Institution, a 

Finnish pension fund for municipal workers; Ilmarinen, a 

Finnish mutual pension insurance company; Continental 

European Fund I and Continental European Fund II, two real 

estate funds of funds managed by Schroder Investment 

Management. 


SIERRA INVESTMENTS CONTRIBUTED €198.5 MILLION 

TO THE CONSOLIDATED PROFIT OF SONAE SIERRA. 

THE COMPANY CONSOLIDATES THE SIERRA FUND IN 

FULL, GIVEN THAT IT HOLDS EFFECTIVE CONTROL 

WITH 50.1% OF THE CAPITAL. 


Direct profits 

The direct profits of Sierra Investments are derived from the 

operation of shopping and leisure centres that are part of its 

portfolio, including those assets that are in the Sierra Fund. The 

direct profits also include the asset management services provided 

to the properties by Sierra Asset Management. 

The growth in turnover over 2006 is largely due to growth in the 

portfolio on two fronts. 

The first includes the opening of Sierra Developments’ centres in 

2007 – namely 8ª Avenida in Portugal, Alexa in Germany and El 

Rosal in Spain – and their acquisition by Sierra Investments. 

The second are the acquisitions of the River Plaza Mall in 

Romania, Münster Arkaden in Germany, and CC Continente de 

Portimão and CC Modelo de Albufeira in Portugal. 

The increase in asset management income over 2006 is also 

the result of the increase in the portfolio of the Sierra Fund and 

higher property valuations. Net Operating Income increased 

by 8%. 

Net financial costs rose 28% compared to 2006 due to an 

increase in bank debt from €1.175 million to a total of €1.680 

million. This increase is largely the result of the acquisition of 

assets during 2007 and of new financing/ refinancing of the 

existing portfolio. 

Indirect profits 

Indirect profits arise either from the change in value of the 

investment properties or the realisation of capital gains on the 

sale of assets and/or shareholding positions. 

The value created on investment properties reached €178 million 

in 2007, of which €167 million relate to value creation on assets 

in Portugal and €9 million in Spain. 

Minority interests of €82.5 million correspond mainly to 49.9% 

ownership of our five partners in the Sierra Fund results. 

Retail operating income 

of €192 million 

Net operating income (NOI) 

increased by 8% to €150 million 

Value created on properties 

of €178 million 

Net profit attributable to equity 

holders of €115.9 million 


Sierra Investments Profit & Loss Account (€ 000) 

23 

2007 2006 % 07/06 

Fixed Rental Income 169,326 152,080 11% 

Turnover Rental Income 8,601 7,600 13% 

Key-Money Income 6,167 6,264 -2% 

Other Income 7,536 7,103 6% 

Retail Operating Income 191,629 173,047 11% 

Property Management Services 9,644 8,719 11% 

Asset Management Services 22,075 18,093 22% 

Letting & Promotion 1,201 4,037 -70% 

Capital Expenditures 4,657 3,088 51% 

Other Costs 19,472 14,220 37% 

Retail Operating Costs 57,049 48,157 18% 

Retail Net Operating Margin 134,580 124,890 8% 

Parking Net Operating Margin 3,216 3,027 6% 

Co-generation Net Operating Margin 1,062 1,217 -13% 

Shopping Centre Net Operating Income 138,859 129,135 8% 

Offices Net Operating Income 342 372 -8% 

Income from Asset Management Services 23,072 18,661 24% 

Overheads 12,283 9,824 25% 

Asset Management Net Operating Income 10,789 8,836 22% 

Net Operating Income (NOI) 149,990 138,344 8% 

Depreciation 886 1,453 -39% 

Recurrent net financial costs/(income) 59,747 46,511 28% 

Non-Recurring costs/(income) (3,969) 200 – 

Results Before Corporate Taxes 93,327 90,179 3% 

Corporate Taxes 18,219 18,771 -3% 

Direct Profit 75,108 71,408 5% 

Realised Property Profit (1,549) (9) – 

Non-Realised Property Profit 179,918 221,060 -19% 

Total Indirect Income from Investments 178,370 221,051 -19% 

Deferred tax 55,023 51,560 7% 

Indirect Profit 123,347 169,492 -27% 

Net Profit for the Period 

Attributable to: 

198,455 240,900 -18% 

Equity holders 115,941 131,441 -12% 

Minority interests 82,514 109,458 -25% 

(un-audited accounts) 

Sierra Investments Consolidated Balance Sheet (€ 000) 

2007 2006 Var. (07 – 06) 

Investment properties & others 3,661,027 2,661,382 999,644 

Tenants 14,158 10,849 3,309 

Deferred taxes 18,655 15,677 2,978 

Other assets 100,956 80,586 20,370 

Deposits & short term investments 208,495 281,845 -73,349 

Total assets 4,003,291 3,050,339 952,952 

Net worth 930,795 832,265 98,530 

Minorities 440,212 398,014 42,198 

Bank loans 1,679,884 1,175,106 504,779 

Shareholder loans 97,318 73,041 24,276 


Other liabilities 294,003 125,483 168,520 

Total liabilities 2,632,284 1,820,060 812,225 

Net Worth, minorities and liabilities 4,003,291 3,050,339 952,952 



SIERRA DEVELOPMENTS HAS RESPONSIBILITY 

FOR ALL ASPECTS OF THE DEVELOPMENT OF 

THE COMPANY’S PORTFOLIO OF SHOPPING 

CENTRES IN EUROPE. 

SIERRA 

DEVELOPMENTS 

26 

32 





Sierra Developments’ activities cover land procurement, concept creation 

and development management services designed to ensure the successful 

completion and inauguration of Sonae Sierra’s new shopping and leisure 

centres in Europe. 

Sierra Developments contributes to our consolidated income in two 

principal ways: by supplying development services to our projects across 

Europe – which now include those in Romania – and by adding value to 

each one during its development phase. The full value of each project is 

realised when the completed property is acquired by Sierra Investments at 

market value. 

The most added value is created during each centre’s development 

phase. The constant recycling of capital, backed by a rigorous 

procurement policy and excellent management standards, creates 

innovative assets that are also attractive investments. 

Effective marketing and letting also impact on the success of our 

developments. These services are contracted out to Sierra Management. 

Sierra Developments in 2007 

25 

Fernando Guedes Oliveira 

Sonae Sierra, Executive Director, 

Developments Europe 

2007 was a positive year for Sierra Developments. Despite increased 

competition in all our markets, we not only made very good progress 

throughout Europe but also approved several new projects. 

In Portugal and Spain, the lowering of real estate yields had a very 

positive effect on the Open Market Value of the shopping centres we 

inaugurated or were developing during the year. 

In Italy, despite increasing financing costs and heavier fiscal charges on 

real estate deals, the additional pressure on yields made the market even 

more competitive than ever. 

In Germany, we had to take a number of measures to minimise the 

negative impact of the tax reform that was enacted on 1 January 2008. 

Inauguration of Alexa shopping centre 

in Berlin, Germany 

Inauguration of 8ª Avenida shopping 

centre in S. João da Madeira, Portugal 

Inauguration of El Rosal shopping 

centre in Ponferrada, Spain 

Inauguration and sale to PREF of Lima 

Retail Park in Viana do Castelo, 

Portugal 

Start of new developments in Ploiesti 

and Craiova in Romania 



Brand new market 

Nevertheless, we began work in Romania and have made good 

progress in what is, for us, a brand new market. 

The beginning of operations in any new market is always an 

important milestone in our progression. Our entry into the 

Romanian market shows that our company is becoming stronger 

in our newer territories, and that there is potential for even more 

growth in other Central European countries when the right 

opportunities present themselves. 

In addition to Sierra Investment’s acquisition of one operating 

shopping centre in Romania, we started work on two brand new 

developments in the cities of Craiova and Ploiesti, which will result in 

55,000m 2 and 64,000m 2 of Gross Lettable Area (GLA) respectively. 

New centre openings 

As well as starting our Romanian operations, we also inaugurated 

four new shopping and leisure centres in Europe. 

The most exciting of these was Berlin’s Alexa, which has not only 

set new standards of design and construction in the German 

shopping and leisure centre market, but also recorded a total of 

5.2 million visits in its first three-and-a-half months of trading. 

Other successful inaugurations included 8ª Avenida in S. João 

da Madeira in Portugal, which now offers 30,477m 2 of GLA, and 

El Rosal, a new centre in Ponferrada, Spain, which has 49,500m 2 

of GLA. 

We also opened Lima Retail Park in Viana do Castelo, Portugal, 

with 10,764m 2 of GLA. This Retail Park has since been sold to 

PREF, the European Retail Park Fund managed by British Land, 

as part of our planned disposal of completed retail park assets. 

New centre developments 

Looking ahead, we have four shopping centres due to open 

during 2008, seven more under development and 13 new 

projects in different phases of completion. We are also in the 

advanced stage of negotiations for several other very interesting 

opportunities. 

In Portugal, we are also developing a new retail park in Setúbal, 

in Greater Lisbon, as a 50/50 joint venture between ourselves and 

Miller Developments. 

At the beginning of 2008, we finally received a definitive building 

permit for Plaza Mayor Shopping in Málaga, Spain, which will 

allow us to restart the construction of 18,800m 2 of GLA, which is 

already fully let and due for completion in 2008. We have also 

continued the licensing process for Pulianas Shopping and Retail 

Park in Granada and hope to secure one other new project. 

Unfortunately, we were forced to postpone the opening of 

Freccia Rossa in Brescia, Italy. This centre is now due to open in 

April 2008 while Gli Orsi, in Biella, is expected to open in October 

2008. We are also making progress with the licensing of Le 

Terraze, in La Spezia, and we plan to secure two additional 

development projects in 2008. 

In Germany, the construction of Loop5 in Weiterstadt is 

progressing well and we expect the successful opening of Alexa 

to help us secure further development projects and investments. 

In Greece, our Pantheon Plaza project in Larissa, which we are 

developing as a 50/50 joint venture with Rockspring, is being 

expanded to create a larger centre designed to accommodate the 

market’s demands. It is scheduled to open by the end of 2008. 

We are progressing the development of Galatsi in Athens and, by 

the year’s end, we hope to have secured two new projects. 

In Romania, as reported elsewhere, we are poised to start work 

on new shopping centres in Craiova and Ploiesti during the first 

half of 2008, and we will be looking for more new opportunities 

in this market. 


4 

5 

2 

3 

1,6 

1 2 

3 

Projects under 

development GLA (m 2) 

Setúbal Retail Park 

Setúbal, Portugal 20,300 

Plaza Mayor Shopping 


Pulianas Shopping and Retail Park 

Granada, Spain 45,000 

Freccia Rossa 

Brescia, Italy 29,741 

Gli Orsi 

Biella, Italy 40,700 

Le Terrazze 

La Spezia, Italy 39,100 

Loop5 

Weiterstadt, Germany 56,000 

Galatsi Shopping 

Athens, Greece 38,695 

Pantheon Plaza 

Larissa, Greece 22,000 

Craiova Shopping 

Craiova, Romania 55,537 

Ploiesti Shopping 

Ploiesti, Romania 64,070 

Inaugurated in 2007 

8ª Avenida, S. João da Madeira, Portugal

4 

5 

6

WE ARE CONFIDENT WE CAN EXPAND OUR 

DEVELOPMENT PIPELINE AND MAINTAIN OUR 

PATTERN OF GROWTH IN OUR TRADITIONAL 

TERRITORIES AND THE NEW MARKETS OF 

CENTRAL EUROPE. 


Prospects for 2008 

The economic outlook for 2008 seems to be improving at a 

slower-than-expected rate, and we face increased levels of 

competition, yet we are confident we can expand our 

development pipeline beyond its 2007 parameters. 

Our plan is to build on the sound base we have established in 

Portugal, Spain, Germany, Italy and Greece, and to become a 

major participant in Romania and other Central Europe markets. 

We are reorganising our structure and staffing, and being more 

selective in our choice of development opportunities, so that we 

can bring our plan to fruition. At the same time, we remain 

committed to innovation in terms of concepts and design as well 

as tenant mix and services. 

Our main ambition is to continue to be recognised as one of the 

best shopping centre developers in Europe and to maintain our 

pattern of growth through the development of new centres and 

working partnerships. 

31 


SIERRA DEVELOPMENTS CONTRIBUTED 

€61.6 MILLION TO THE CONSOLIDATED NET 

PROFIT OF SONAE SIERRA. 


Net Profit for the period 

The income from the development services, capitalised on the 

projects under development, remains at a high level. 

2007 was a year of successful inaugurations, with two openings 

in Portugal, one in Spain and one in Germany. 

The portfolio of projects under development remains highly 

dynamic, with new projects in Portugal, Spain, Italy, Germany, 

Greece and Romania. 

The realised value in projects benefited from the four 

inaugurations of the year, especially Alexa, which was valued on 

opening at a much higher than forecast. 

The value created in projects under development reached an 

impressive €93 million, which compares with €28 million 

recognised in the previous year. This performance is mainly due 

to the yields’ compression in the real estate market, and the 

excellent projects’ management combined with an efficient 

leasing of projects, both completed and under development. 

The operating costs increased by 27% when compared with 

2006, mainly due to the growth in our business activities and our 

entry into a new European market, which has resulted in higher 

personnel costs – up by 18% – arising from the reinforcement of 

our existing teams and the creation of new operational structures 

designed to support the new market. 

The net financial income is the result of the capital invested 

in our portfolio, which reduces as the financial leverage of 

projects increases. 

Development services delivered 

€13 million 

Value created on assets 

€93 million 

Net Profit attributable to equity 

holders €61.6 million 


Sierra Developments Profit & Loss Account (€ 000) 

33 

2007 2006(*) % 07/06 

Project Development Services Rendered 13,037 12,942 1% 

Value created in projects 92,635 28,401 226% 

Operating Income 105,672 41,343 156% 

Personnel costs 9,244 7,818 18% 

Other costs 19,344 14,685 32% 

Operating costs 28,587 22,503 27% 


Depreciation and provisions 22 78 -71% 

Net financial costs/(income) (449) (2,912) 85% 

Profit Before Taxes 77,512 21,674 258% 

Corporate taxes (2,821) (2,265) -25% 

Deferred tax 18,718 12,101 55% 



61,614 11,838 – 

Equity holders 61,614 11,838 – 

Minority interests – (0) – 


(*) 2006 was restated in order to demonstrate the combined effect of the provision of services and the creation of value in 

projects 

Sierra Developments Consolidated Balance Sheet (€ 000) 

31/12/07 31/12/06 Var (07 – 06) 

Properties under development 470,341 348,482 121,859 

Customers 1,876 1,248 627 

Other assets 155,505 106,082 49,423 

Deposits 34,171 33,210 961 

Total assets 661,894 489,023 172,871 

Net worth 148,695 92,845 55,850 

Minorities 1,225 2,229 -1,004 

Bank loans 83,951 125,820 -41,869 

Shareholder loans 342,119 162,458 179,661 


Other liabilities 57,854 96,886 -39,033 

Total liabilities 511,974 393,949 118,025 

Net worth, minorities and liabilities 661,894 489,023 172,871 



SIERRA MANAGEMENT IS RESPONSIBLE FOR 

MANAGING, MARKETING AND LETTING A 

DIVERSE PORTFOLIO OF SHOPPING CENTRES 

OWNED BY SONAE SIERRA AND THIRD PARTIES 

IN EUROPE. 

SIERRA 

MANAGEMENT 

36 

43 





Sierra Management’s role is to create and maintain vital links between 

owners, tenants and shopping centre customers and thus contribute to 

Sonae Sierra profits through various management services we provide in 

the shopping centres we are responsible for. 

As a pioneer in our sector, we have long recognised that services like 

these must be maintained at the highest levels if the shopping centres in 

our care are to increase in value over time. This approach is particularly 

important in matters relating to tenant mix, marketing and operational 

efficiency, where we have achieved some notable successes. 

In the last year we have reorganised the new technologies side of our 

business with the objective of focussing solely on the activities which 

were adding value to our shopping centres. These activities now form 

part of our Marketing function. We have also created a new Innovation 

Office focused on enhancing the value proposition of the shopping 

centres we manage. 

Sierra Management in 2007 

35 

Pedro Caupers 

Sonae Sierra Executive Director, 

Property Management Europe 

Sierra Management made steady progress during 2007. Our business in 

our traditional territories produced a satisfactory performance in 

moderately good economic circumstances, while our entry into the 

Romanian market added two new shopping centres to our portfolio of 

managed properties. The first, River Plaza Mall in Ramnicu Valcea, is an 

already operating shopping centre acquired by Sierra Investments. The 

second, Arena Mall in Bacau, is owned by a third-party and was 

inaugurated last December. We look forward to the start of the leasing 

of Sierra Developments’ two new projects in this fast-moving market in 

the cities of Ploiesti and Craiova. 

We also started managing centres in Germany. The opening of Alexa in 

Berlin and our takeover of the management of the Münster Arkaden 

centre adds two major properties to our German portfolio. We believe 

Alexa is one of the most innovative shopping and leisure centres in 

Germany. It has an attractive style with several novel features, and an 

imaginative tenant mix offering consumers a wide choice of shopping 

and leisure activities. It was almost fully let when it opened in September. 

Since then its trading figures have been excellent, with traffic and sales 

well above budget. 

António Casanova 


Key Accounts, Marketing and 

Innovation 

Started management of Alexa and 

Münster Arkaden, in Germany 

Began management of River Plaza 

Mall and Arena Mall, in Romania 

Start of management of Lima Retail 

Park and 8ª Avenida, in Portugal 

Commenced management of El Rosal, 

in Spain 



The total visits in Portugal decreased in comparison to 2006, 

due to the cessation in the management of the Modelo galleries. 

On a comparable basis, this means that total visits increased 

by 0.2%. In Italy, the decrease in the number of visits on a 

comparable basis is linked to the refurbishment of the Valecenter, 

a fact that obviously limited the number of visits, and therefore 

sales figures, in 2007. 

Iberian additions 

We have enlarged our portfolio in Iberia with the addition of 

Lima Retail Park and 8ª Avenida in Portugal and El Rosal in Spain. 

Lima Retail Park, which – as reported elsewhere – was sold to 

PREF in December 2007, provides 13 retail outlets of between 

150m 2 and 4,000m 2 and features brands such as Maxmat, 

Moviflor, Mundo dos Fatos, Fábio Lucci and Casa. The car park 

has spaces for 400 vehicles. While it is not Sonae Sierra’s policy to 

own retail parks once they have been built, we are still able to 

provide income-earning management services at centres such as 

this one at Viana do Castelo. 

Sales and Visits 

Visits % 07/06 Sales % 07/06 

2007 2006 total like-for-like 2007 2006 total like-for-like 

Portugal 218,458 230,417 -5.2% 0.2% 2,389,145 2,229,748 7.1% 5.9% 

Spain 77,725 77,049 0.9% -0.8% 987,518 886,859 11.4% 6.1% 

Italy 14,563 12,545 16.1% -13.8% 45,638 42,281 7.9% -16.3% 

Greece 8,152 7,314 11.5% 11.5% 164,061 118,779 38.1% 38.1% 

Germany 5,234 – – – 182,041 – – – 

Romania 1,173 – – – – – – – 

Sales in Euro (thousands) 

Visits in thousands 

8ª Avenida is located in the city of S. João da Madeira, some 40 

kilometres south of Porto. It is a medium-size centre, built over 

two levels, and the result of an expansion into what was the 

Modelo supermarket gallery. It now offers more than 100 shops, 

thus making it possible for local people to satisfy most of their 

shopping needs without having to travel to Porto. 

El Rosal, located in Ponferrada in Spain’s Leon province, was 

opened in October 2007. Offering a total of more than 

49,500m 2, it occupies a dominant position in its catchment area. 

The centre still had some 30 shops unoccupied at the end of 

December, but it is trading rather well and we expect to reduce 

its vacancy levels very quickly. 


37 



2,6 

1 

4 

5 

1 2 3 

4 

Managed shopping 


8ª Avenida 

S. João da Madeira, Portugal 20,155 

AlgarveShopping 

Guia, Albufeira, Portugal 42,540 

ArrábidaShopping 


CascaiShopping 

Cascais, Lisboa, Portugal 73,525 

CC Continente da Amadora 

Amadora, Portugal 18,849 

CC Continente de Leiria 

Leiria, Portugal 23,785 

CC Continente de Portimão 

Portimão, Portugal 13,485 

CC Modelo de Albufeira 

Albufeira, Portugal 10,461 

Centro Colombo 


Centro Vasco da Gama 


CoimbraShopping 


Coimbra Retail Park 


Estação do Oriente S.C. 


Estação Viana 


GaiaShopping 


Galeria Lambert 


Grandella Lisboa, Portugal 5,907 

GuimarãeShopping 

Guimarães, Portugal 26,830 

Lima Retail Park 


LoureShopping 

Loures, Portugal 38,986 

MadeiraShopping 

Funchal, Madeira, Portugal 26,700 

MaiaShopping 

Maia, Porto, Portugal 28,906 

MarcoShopping 

Marco de Canavezes, Portugal 1,820 

NorteShopping 

Matosinhos, Porto, Portugal 73,122 

Parque Atlântico 

Ponta Delgada, Azores, Portugal 22,340 

RioSul Shopping 

Seixal, Portugal 44,406

3 

7 

5 

6 

Managed shopping 


Serra Shopping 

Covilhã, Portugal 17,680 

Sintra Retail Park 

Sintra, Portugal 17,489 

ViaCatarina 

Porto, Portugal 11,656 

Avenida M40 

Madrid, Spain 48,223 

Dos Mares 

San Javier, Murcia, Spain 24,776 

El Rosal 

Ponferrada, Spain 49,476 

Grancasa 

Zaragoza, Spain 77,378 

La Farga 

Barcelona, Spain 17,412 

La Morea 

Pamplona, Spain 18,878 

Luz del Tajo 

Toledo, Spain 42,020 

Max Center 


Parque Guadaira 

Seville, Spain 32,668 

Parque Principado 

Oviedo, Spain 74,398 

Plaza Éboli 

Pinto, Madrid, Spain 31,068 

Plaza Mayor 


Valderaduey 

Zamora, Spain 20,400 

Valle Real 

Santander, Spain 47,825 

Zubiarte 


Airone 

Monselice, Padova, Italy 15,779 

Valecenter 

Marcon, Venice, Italy 58,152 

Alexa 

Berlin, Germany 56,445 

Münster Arkaden 

Münster, Germany 39,897 

Mediterranean Cosmos 

Thessalonica, Greece 45,956 

River Plaza Mall 

Ramnicu Valcea, Romania 11,953 

Arena Mall 

Bacau, Romania 18,928 

7

OUR PRINCIPAL GROWTH IS EXPECTED TO COME 

FROM THE COUNTRIES OUTSIDE IBERIA – IN 

PARTICULAR IN GERMANY, ITALY AND ROMANIA 

– WHERE THERE IS SCOPE FOR THE APPLICATION 

OF OUR SKILLS. 


Italian and Greek developments 

We have made no additions to our Italian portfolio during the 

year. Instead, we have concentrated on leasing space in Freccia 

Rossa in Brescia, which is due to open in April 2008, and in Gli 

Orsi in Biella, which is due to open in the Autumn. We have also 

started the leasing process for the larger stores that will feature in 

Le Terrazze in La Spezia, which is scheduled for completion and 

inauguration in 2010. 

We have one operating shopping centre in Greece, 

Mediterranean Cosmos, which opened in 2005. Lettings were 

comparatively slow during the first year of trading but have 

accelerated during the past year. Occupancy is now above 99% 

of Gross Lettable Area (GLA). Mediterranean Cosmos’s 

performance has convinced tenants of the value of being in a 

modern shopping and leisure centre and has eased our passage 

into the leasing processes for our new centres, Galatsi Shopping 

in Athens, which is due to open in 2009, and Pantheon Plaza in 

Larissa, due to open in the latter part of 2008. 

Looking ahead 

Looking ahead to the coming year, we anticipate some 

deceleration of growth in all the European economies we operate 

in the first half of the year, partly as a result of the difficulties 

facing the international debt market and partly because of some 

expected reduction in consumer confidence. We anticipate 

improved economic conditions during the second half-year. 

For Sierra Management, our principal growth is expected to come 

from the countries outside Iberia – in particular in Germany, Italy 

and Romania – where there is potential for acquiring shopping 

and leisure centres which, at present, do not enjoy the benefits of 

our management expertise. Within Iberia, our aim is to capitalise 

on the synergies between Portugal and Spain so that we can 

become more efficient as property managers while still 

maintaining a very high level of service. 

41 

As part of our commitment to high levels of service, we created 

a new cluster philosophy in the marketing area, scheduled for 

roll-out across Europe during 2008. This new approach brings 

together various centres according to their catchment areas and 

competitive situation, so that we can apply our management and 

marketing skills across the clusters in a more cost-effective way. 

Our over-arching objective is to be recognised as the best 

shopping centre management company in Europe – a status 

which has already been acknowledged, in broad terms, by Sonae 

Sierra’s receipt of several property industry awards. 

As the company’s property Management division, we recognise 

that we must consolidate our presence in the countries outside 

Iberia before Sierra Management can expect to receive a similar 

accolade as the best pan-European specialists in our particular 

field. 



2007 

2006 

2005 

2004 

2003 

2002 

2001 

2000 

1999 

1998 

1997 

1996 

Portugal 

Spain 

Italy 

Greece 

Germany 

Romania 

Portfolio under Management over time 

GLA (000 m 2) 

No. of Contracts 

Portfolio under Management in 2007 

GLA owned (000 m 2) 

GLA third-party (000 m 2) 

2007 

2006 

2007 

2006 

2007 

2006 

2007 

2006 

2007 

2006 

2007 

2006 

GLA 

(000 m 2) 

1,863 

1,682 

1,732 

1,576 

1,342 

1,293 

1,015 

853 

784 

625 

550 

349 

No. of 

Contracts 

778/139 

738/179 

527/107 

478/107 


Sierra Management contributed €5.1 million to Sonae Sierra’s 

consolidated profit. 

The division’s portfolio of centres under management increased 

by five in 2007 with the addition of Alexa in Germany, 8ª Avenida 

and Lima Retail Park in Portugal, El Rosal in Spain and River Plaza 

Mall in Romania. 

In line with this expansion of the portfolio, total income grew by 

9% between 2006 and 2007. The new shopping centre 

openings, together with those scheduled for 2008, fuelled a 

sharp increase in letting income, which up by 26%. For the first 

time in some years, with the addition of Alexa and River Plaza 

Mall, Sierra Management has a responsibility for operating 

centres in all the markets where Sonae Sierra is present. 

During the year, total costs grew by 10%, only slightly above 

total income, which is a very good result considering the current 

geographical expansion of the management business. Given the 

necessary increase in personnel costs, a great effort was made to 

control all other operating costs, with special emphasis on 

general supplies and services. 

As a result of the growth of the Sierra Management structure, net 

operating income (NOI) increased by 5% between 2006 and 2007. 

Income from management 

services €34.1 million 

Net Operating Income 

€6.9 million 

Net profit attributable to equity 

holders €5.0 million 


6,539 

5,705 

5,729 

4,916 

4,333 

3,974 

3,210 

2,724 

2,393 

2,050 

1,747 

1,186 

76/62 

73/61 

46 

46 

96 

12/31

Sierra Management Profit & Loss Account (€ 000) 

43 

2007 2006 % 07/06 

Property Management Income 25,924 24,008 8% 

Letting Services Income 5,241 4,151 26% 

Other Income 2,887 3,215 -10% 

Total Income from Management Services 34,052 31,374 9% 

Operating Costs 27,163 24,801 10% 


Depreciation and Provisions 1,299 830 56% 

Net financial costs/(income) (1,474) (938) -57% 

Non-recurring costs/(income) (4) (62) 93% 


Corporate taxes 1,994 2,253 -12% 

Net Profit for the Period 5,074 4,489 13% 


Equity holders 5,012 4,424 13% 

Minority interests 62 66 -6% 


Sierra Management Consolidated Balance Sheet (€ 000) 

31/12/07 31/12/06 Var. (07 – 06) 

Net Fixed Assets 433 730 -297 

Goodwill 5,472 7,099 -1,627 

Tenants 13,240 11,763 1,477 

Tax Shelter 402 202 200 

Other Assets 7,024 11,429 -4,406 

Deposits 21,551 16,393 5,158 

Total Assets 48,122 47,617 505 

Net Worth 5,979 6,114 -135 

Minorities 84 12 72 

Other Liabilities 42,060 41,491 569 

Total Liabilities 42,060 41,491 569 

Net Worth, Minorities and Total Liabilities 48,122 47,617 505 



SONAE SIERRA BRAZIL, A 50/50 PARTNERSHIP 

BETWEEN SONAE SIERRA AND DEVELOPERS 

DIVERSIFIED REALTY, IS FOCUSED ON OWNING, 

DEVELOPING AND MANAGING SHOPPING 

CENTRES IN BRAZIL. 

SONAE SIERRA 

BRAZIL 

46 

52 





Sonae Sierra Brazil is the power base for the Brazilian business of Sonae 

Sierra and Developers Diversified Realty (DDR), one of the largest USbased 

REITs with a focus on the shopping centre sector. 

The 50/50 partnership currently owns and operates a total of nine 

income-generating shopping centres – eight located in the São Paulo 

region and one in Brasilia – featuring a total of 1,846 shops. 

Sonae Sierra Brazil’s aim is to become one of Brazil’s leading companies and 

a partner of choice in the shopping and leisure centre sector. This objective 

is being achieved through a combination of organic growth and acquisition 

accelerated by the 2006 acquisition of 50% of Sonae Sierra Brazil by DDR. 

While many international investors have previously perceived Brazil as a 

risky market, the country’s current economic situation is comparatively 

sound. Inflation is under control and interest rates are being steadily 

reduced. As a result, there is a growing interest in Brazil amongst several 

major international investors. 

We anticipate that, as the shopping centre market matures over the 

coming years and the economic conditions change, more international 

real estate investors will be encouraged to include Brazil in their portfolios. 

Sonae Sierra Brazil in 2007 

2007 was a year of consolidation for Sonae Sierra Brazil. Although we 

did not open any new shopping centres, we increased our holdings in 

three of our existing operations and have started the construction of 

Manauara Shopping, our first major development in Manaus, the capital 

of Amazon State and the most important city in Northern region. 

We now own 83% of the assets in Shopping Metrópole in São Bernardo 

do Campo, SP, which is an increase from 10%. 

We have increased our holding in Shopping Plaza Sul in São Paulo to 

30%, where we previously owned 20%. 

And we now own 30% of Tivoli Shopping in Santa Bárbara D’Oeste, SP, 

which is an increase on our original holding of 25%. 

Having increased our holding in Shopping Metrópole, we have also 

started a major refurbishment programme at this centre, and we are 

expanding Shopping Plaza Sul through the addition of a new food hall 

and multiplex cinema. 

45 

João Pessoa Jorge 


Brazil 

Increased holdings in Shopping 

Metrópole, Shopping Plaza Sul and 

Tivoli Shopping 

Started construction of Manauara 

Shopping 

Parque D. Pedro and Shopping Penha 

awarded ISO 14001 verification – firstever 

for a shopping centre in Brazil 



Much of this progress stems from the benefits we have derived 

from our partnership with DDR. Not only do we have increased 

financial strength, we have also learned much from DDR’s 

management techniques and principles. We believe the value of 

this learning process can only increase over time. 

Higher Occupancy rates and OMV growth 

During 2007, we achieved an increase in our occupancy rate, in 

terms of GLA, from 94.0% to 95.8%. 

Our results for the year also benefited from a substantial increase 

in the value of our assets. This significant increase in the Open 

Market Value (OMV) in Euros is due to three factors: yields 

compression in the Brazilian market, improved performance of 

the shopping centres and the effects of foreign exchange rates. 

Open Market Value Figures in Euro (thousands) 

Shopping Centres in Operation % Sierra Open Market Value OMV Variation OMV Variation 

31 Dec. 2007 31 Dec. 2007 31 Dec. 2006 Total % 

Parque D.Pedro 100% 222,595 150,694 71,901 48% 

Boavista Shopping 100% 23,921 20,576 3,345 16% 

Shopping Penha 73% 36,707 27,166 9,541 35% 

Shopping Metrópole (1) 83% 60,494 4,542 55,952 1232% 

Tivoli Shopping (2) 30% 7,365 4,303 3,062 71% 

Franca Shopping 65% 8,088 5,953 2,135 36% 

Pátio Brasil 10% 9,317 6,875 2,442 36% 

Shopping Plaza Sul (3) 30% 22,170 9,141 13,029 143% 

Shopping Campo Limpo 20% 5,862 4,061 1,801 44% 

Total Brazil 396,519 233,309 163,209 70% 




Occupancy Rate 


2007 2006 

Brazil 95.8% 94.0%

2 

5 

7 

3 

1,6 

4 

1 2 3 

4 

Owned and managed 

shopping centres GLA (m 2) 

Boavista Shopping 

São Paulo, SP, Brazil 26,156 

Franca Shopping 

Franca, SP, Brazil 17,561 

Parque D.Pedro 

Campinas, SP, Brazil 119,968 

Pátio Brazil 

Brasília, DF, Brazil 33,324 

Shopping Campo Limpo 


Shopping Metrópole 

São Bernardo do Campo, SP, Brazil 24,724 

Shopping Penha 


Shopping Plaza Sul 


Tivoli Shopping 

Santa Bárbara D’Oeste, SP, Brazil 22,017 

Projects under 

development GLA (m 2) 

Manauara Shopping 

Manaus, AM, Brazil 43,616

5 

6 

7


Tenants’ sales up 

In line with the increase in the occupancy rates, our tenants 

achieved a significant increase in their sales income. 

Much of this success is due to the way we conduct annual 

market research in each centre and their catchment area, and to 

our development of specific marketing and strategic plans for 

each shopping centre. In every case, our aim is to improve their 

performance and increase traffic and sales. 

We also develop commercial strategies that aim to increase our 

occupancy rate and bring in new tenants and new operations 

that will make our shopping centres more attractive, more 

profitable and, as a result, more valuable. 

Environmental target 

One of our long-term ambitions is to have all our shopping and 

leisure centres ISO 14001 verification for their environmental 

management. This is in line with the group’s commitment to 

demanding levels of environmental management in vital areas 

such as energy savings, water quality and usage, air quality and 

waste disposal. 

Rents 

Fixed rents Variable rents Total rents % 07/06 

2007 2006 2007 2006 2007 2006 total 

Brazil 47,230 41,177 3,447 2,502 50,677 43,680 16.0% 

Figures in Euros (thousands) 

Sales and Visits 

Visits % 07/06 Sales % 07/06 

2007 2006 total like-for-like 2007 2006 total 

Brazil 84,747 79,718 6.3% 6.3% 1,010,628 826,822 22.2% 

Sales in Euros (thousands) 

Visits in thousands 

51 

As part of our plan, we submitted Parque D. Pedro and Shopping 

Penha centre for ISO 14001 verification last year. We are pleased 

to report that this was granted, making these two shopping 

centres the first-ever of its kind to receive ISO verification in 

Brazil. We hope that others will follow in due course. 

Ambitions for 2008 

We aim to continue the consolidation of our business through 

the improvement of our established centres, the acquisition of 

further existing operating centres – whenever and wherever 

appropriate – and the identification of at least one suitable 

greenfield development site. 

We aim to complete the construction and development of 

Manauara Shopping by the by the second semester of 2009, 

and to open this centre fully let. This would be a ‘first’ for 

Sonae Sierra Brazil and a considerable accomplishment. 


OUR DEVELOPMENT BUSINESS HAD A VERY POSITIVE 

YEAR, WITH A 76% INCREASE IN ITS INCOME. OUR 

PROPERTY MANAGEMENT BUSINESS ALSO GREW 

BY 86% OVER THE YEAR. 


Direct profit 

The retail operating income from our investment business grew 

by 35% during 2007. This increase was mainly due to the 

increase of the occupancy rates in several shopping centres, to 

the favourable effect of our acquisition of additional stakes in 

Shopping Metrópole, Shopping Plaza Sul and Tivoli Shopping, 

and the positive improvement in the Brazilian Real exchange rate. 

The year also saw a 43% increase in our operating margin. 

The development business has had a very positive year, with a 

76% increase in the income. 

The income from our property management business grew by 

86% during 2007 as a result of higher occupancy rates in several 

shopping centres and growth of our letting activities. 

Indirect Profit 

Indirect profit represents the growth in the Open Market Value of 

our assets in 2007, which was mainly due to a new yields 

compression in the Brazilian real estate market. 

Balance Sheet 

The improvement in the exchange rate of the Real, together with 

a total net profit of €87.2 million and an increase in the equity 

employed of €51.5 million, led to an increase in the total net 

worth of €158 million. The value of the investment properties 

benefited from a combination of the favourable change in the 

exchange rates (+€ 19.4 million), our increased stake of three 

shopping centres, and the value created during the year. 

Shopping centre net operating 

margin increased 43% to 

€27.3 million 

Net operating income increased 

46% to €25.9 million 

Net profit increased by 305% 

to €87.2 million, of which 

€84.3 million are attributable 

to equity holders 


Sonae Sierra Brazil Profit & Loss Account (€ 000) 

53 

2007 2006 % 07/06 

Fixed Rental Income 29,750 21,780 37% 

Turnover Rental Income 2,166 1,557 39% 

Key-Money Income 2,044 1,768 16% 

Other Income 1,081 868 25% 

Retail Operating Income 35,041 25,973 35% 

Property Management Services 1,516 1,050 44% 

Letting & Promotion Services 834 997 -16% 

Other Costs 6,251 5,013 25% 

Retail Operating Costs 8,601 7,060 22% 

Parking Net Operating Margin 854 210 307% 

Shopping Centre Net Operating Margin 27,294 19,123 43% 

Income from Project Development Services 271 154 76% 

Income from Property Management Services 6,330 3,410 86% 

Total Income from Services Rendered 6,601 3,564 85% 

Overheads 7,994 4,933 62% 


Depreciation 121 78 55% 

Provisions 964 1,189 -19% 

Net financial costs/(income) (530) 1,534 -135% 

Non-recurring costs/(income) 242 475 -49% 


Corporate taxes 5,028 3,092 63% 

Direct Profit 20,076 11,385 76% 

Non-Realised Property Profit 91,885 23,644 289% 

Non-Realised Property Profit (Under Dev.) 9,102 – 

Total Indirect Income from Investments 100,987 23,644 327% 

Deferred tax 33,850 13,492 151% 

Indirect profit 67,136 10,151 – 



87,212 21,536 305% 

Equity holders 84,264 20,476 312% 

Minority interests 2,948 1,060 178% 


Sonae Sierra Brazil Consolidated Balance Sheet (€ 000) 

2007 2006 Var. (07 – 06) 

Properties 434,242 233,352 200,890 

Investments 396,519 233,309 163,209 

Projects Under Development 37,724 43 37,681 

Tenants 4,994 6,399 -1,405 

Tax Shelter 6,018 4,107 1,911 

Other Assets 4,183 4,541 -358 

Deposits 5,304 5,952 -648 

Total Assets 454,740 254,351 200,389 

Net Worth 365,753 207,708 158,045 

Minorities 14,895 10,401 4,494 

Bank Loans 673 953 -281 

Shareholder Loans – -88 88 

Deferred Taxes 62,986 27,980 35,005 

Other Liabilities 10,433 7,396 3,037 

Total liabilities 74,092 36,242 37,849 

Net Worth, Minorities and Total Liabilities 454,740 254,351 200,389 



José Edmundo Figueiredo 

Sonae Sierra Executive Director, CFO 

Sonae Sierra Consolidated Accounts 

The Group’s 2007 performance 

2007 was an outstanding year for Sonae Sierra, with a solid 

operating performance and gains in the valuations of our 

properties producing record profits of €300 million and an 

increase of 15% in our NAV to €1.713 billion. 

The opening of Alexa, our new landmark shopping and leisure 

centre in Berlin, and our entry into the Romanian market are 

also milestones in our progress towards our goal of becoming a 

€2 billion NAV company by 2009. 

As part of our programme of leveraging the assets of the 

company, we closed the refinancing of the largest property in our 

European portfolio, Centro Colombo in Lisbon, in April. We also 

secured an increase in our debt levels from 29.4% to 38.3%, and 

have achieved marked improvements in our operational costs. 

In the latter part of the year, taking advantage of the relatively 

low rates on long maturities, we hedged a number of our loans, 

mostly for five-year periods. 

Thus far, the US sub-prime crisis has had limited impact in our 

business. In general, the cost of our debt has gone slightly up 

and there is clearly some uncertainty in the market relating to 

liquidity. Despite this, we have maintained our growth strategy 

and we continue to pursue opportunities that we find attractive. 

Ratios 

31/12/07 31/12/06 

Asset Gearing 38.3% 29.4% 

Interest Cover 2.13 2.81 

Development Risk 20.7% 21.3% 

Looking in 2008 

Looking ahead, we believe that the monetary authorities, 

financial institutions and investment community will work 

together and will be able to overcome the present liquidity 

difficulties in the markets. The fundamentals in many of the 

world’s biggest economies still allow for some sustained growth. 

However, our main concerns relate to the price of some products 

and the impact they will have on inflation levels in the developed 

countries. 

Given this caveat, we have a moderately optimistic view of 2008, 

which we believe will be an interesting year for the European 

shopping centre industry. On the one hand, yields are at 

historically low levels and the scope for valuation gains is limited. 

On the other hand, the operating performance of well-located, 

well-designed, well-managed shopping centres continues to be 

strong. 

It is this basic strength in the shopping and leisure centre sector 

that supports our strategy for growth, generally through the 

development of new projects. As a result, the finance team’s 

focus for 2008 will be on the delivery of the funds needed to 

support this strategy. 

The assumption that yield compression in mature markets 

will be limited in the future, does, however, have significant 

implications for financial management. In light of this, we will 

be concentrating on operational optimisation, particularly 

at the cost level. With the objective of securing maximum value 

for the company we shall aim to control both operating and 

financial costs. 


SONAE SIERRA’S CONSOLIDATED ACCOUNTS 

PRESENT THE GROUP’S YEAR-ON-YEAR 

PERFORMANCE IN PURELY FINANCIAL TERMS. 

LAST YEAR’S PERFORMANCE WAS OUTSTANDING, 

WITH RECORD PROFITS OF €300 MILLION AND 

AN INCREASE IN NAV OF 15%. 

Net Asset Value 

In 2001, the company decided to adopt International Accounting 

Standards (IAS) in the preparation of its consolidated accounts. 

This led to the Open Market Value (OMV) of the investment 

properties being reflected in the company’s consolidated balance 

sheet. However, the company does not believe that the Net Asset 

Value (NAV) resulting from such a consolidated balance sheet 

truly reflects its value, for two reasons. 

In the first instance, under IAS rules, properties being developed 

and properties held for sale are not booked at market value. In 

the case of Sonae Sierra, shopping centres under development 

are therefore booked at historic cost. The undervaluation of these 

assets can be significant. 

In the second instance, under IAS rules, deferred taxes on 

unrealised gains on investment properties are accounted for in 

the balance sheet. From the company’s point of view, the 

deduction of this deferred tax is arguable, as the transactions of 

Lima Retail Park in Viana do Castelo and LoureShopping in 

Loures, both of which are in Portugal, have once again 

confirmed. When a property is sold, the market practice is not to 

sell the property as such, but to sell the holding company which 

owns it. Moreover, in various jurisdictions, capital gains arising 

from the sale of shares are sheltered from tax. 

For these reasons, the company calculates and publishes an NAV 

which results from valuing all its properties at Open Market Value 

and does not include a deduction for deferred taxes on 

unrealised capital gains. Neither does the NAV include the value 

of its operating businesses, other than that resulting from 

acquisitions. 

The calculation now presented is consistent with the NAV 

calculation published in previous years. 

The NAV on 31 December 2007 of the properties attributable to 

Sonae Sierra was €1,713 million compared with €1,490 million 

on 31 December 2006. The NAV per share of the properties 

attributed to the company is €52.69 against €45.82 on 

31 December 2006, an increase of 15.0%. 

55 

Net Asset Value (NAV) 2007 

Total 

Open market value 4,361,437 

Investment properties 3,850,362 

Properties under development & others 511,074 

Total bank debt -1,750,513 

Cash & Deposits 48,848 

Minorities -686,111 

Other net liabilities -230,867 

Dividend paid -29,588 

NAV 2007 1,713,204 


2007 

2006 

2005 

2004 

2003 

2002 

2001 

Net Asset Value (NAV) 

NAV 

NAV per share 

NAV 

€m 

1,713 

1,490 

1,265 

1,060 

948 

1,037 

934 

NAV 

per share 

€m 

52.69 

45.82 

38.90 

32.60 

29.16 

27.67 

24.9 


THE TOTAL DIRECT INCOME FROM INVESTMENT 

INCREASED FROM €242.1 MILLION TO €279.9 

MILLION FOR THE YEAR, WHILE OUR INDIRECT 

PROFIT FROM INVESTMENTS WAS €214 MILLION. 

Consolidated Profit & Loss Accounts 

The Company reached a record Net Profit of €300 million, 

representing an increase of 11% when compared with 

previous year. 

To allow the comparison between the 2007 performance and the 

2006 performance, was prepared an pro-forma Profit & Loss 

Account of 2006 (2006 PF). The variation is calculated 

considering this 2006 PF Profit & Loss Account. 

The total direct income from investments increased by €21.2 

million, from €258.7 million to €279.9 million. This reflects the 

increase in the portfolio resulting from the acquisitions in 2007 

(Albufeira, Portimão, Münster and River Plaza), the increase in the 

participations of three assets in Brazil (Shopping Metrópole, Plaza 

Sul Shopping and Tivoli Shopping) and the four inaugurations of 

the year (Lima Retail Park, Alexa, 8ª Avenida and El Rosal). 

The company presented an indirect profit from investments of 

€214 million, resulting mainly from the gains on openings and 

from the increase in the Open Market Value (OMV) of the 

investment properties. However the growth in the OMV of the 

assets, when compared with 2006, was lower, as the yields 

compression was more aggressive during 2006 and in the future 

tends to be more stable. 

Sierra Developments recognises as non-realised gains the margins 

in the projects under development, but these margins are not 

recognised at Sonae Sierra consolidated level, given that, under 

IAS rules, the value created is only recognised at the time of the 

opening of the shopping centre. 

During 2007, Sonae Sierra recognised the gains realised on 

properties of €12.3 million, as a result of the following 

transactions: 

Adjustment to the 50% sale price of Loop5 to 

Foncière Euris; 

Sale of 100% of Lima Retail Park to PREF; 

Sale of 50% of LoureShopping to Deka Immobilien. 

The transactions completed during 2007 have confirmed, once 

again, that the Open Market Value, less company liabilities and 

excluding the deferred taxes, reflects the Net Asset Value. 

The amount of Net Profit attributable to Equity Holders increased 

by €54.6 million, corresponding to a growth of 34%. 

Consolidated Balance Sheet 

The total assets amounted to €4,495 million at the end of 2007. 

This represents an increase of €893 million when compared with 

the previous year and results mainly from an increase in the 

investment portfolio arising from the openings, from the 

acquisitions and from the value created in the existing portfolio. 

The increase in the bank debt amounts to €456 million and 

results mainly from the financing of the acquisitions and the 

projects under development. 

The development risk weight, measured as the amount invested 

and to be invested to conclude the projects under development 

as a percentage of total assets, plus the amount needed to 

conclude those same projects, reduced from 21.3% to 20.7%, 

as a result of the centre openings during the year. 

Net profit attributable to 

equity holders increased 34% 

to €215 million 

NAV increased €223 million, 

a growth of 15% over 2006 

Asset gearing increased to 

38.3%, from 29.4% in 2006 


Sonae Sierra Consolidated Profit and Loss Account (€ 000) 

2007 2006 PF* 2006 % 07/06 PF 

Direct Income from Investments 279,854 258,653 242,052 8.2% 

Operating costs 119,694 102,659 84,773 17% 

Other costs 3,950 6,974 6,974 -43% 

Direct costs from investments 123,644 109,633 91,747 13% 

Net Operating Margin 156,211 149,020 150,305 4.8% 

Depreciation 1,944 1,950 1,950 – 

Net financial costs 47,997 44,162 44,162 9% 

Direct profit before taxes 106,269 102,908 104,193 3% 

Corporate tax 19,969 20,548 20,548 -3% 

Direct profit 86,300 82,360 83,645 5% 

Gains Realised on investments 12,294 -13,861 -13,861 189% 

Value created on investments 293,299 271,177 269,892 8% 

Indirect income 305,593 257,317 256,031 19% 

Deferred tax 91,746 69,094 69,094 33% 

Indirect profit 213,847 188,223 186,937 14% 

Net profit before minorities 


300,147 270,583 270,583 11% 

Equity holders 214,897 160,318 160,318 34% 

Minority interests 85,250 110,265 110,265 -23% 


* 2006 PF – the year 2006 was restated to demonstrate the effect on Income and on Costs of the asset management 

service rendered. 

Sonae Sierra Consolidated Balance Sheet (€ 000) 

57 

2007 2006 Var. (07 – 06) 

Investment properties 3,774,495 2,729,662 1,044,833 

Properties under development and others 428,618 354,544 74,074 

Goodwill 81,338 51,345 29,993 

Deferred taxes 22,194 25,483 -3,289 

Other assets 139,288 108,742 30,546 

Deposits 48,848 332,313 -283,465 

Total assets 4,494,782 3,602,089 892,693 

Net worth 1,339,137 1,142,894 196,243 

Minorities 448,970 405,513 43,457 

Bank loans 1,750,513 1,294,504 456,010 

Shareholder loans from minorities 88,636 64,255 24,381 


Other liabilities 268,570 226,131 42,438 

Total liabilities 2,706,675 2,053,682 652,993 

Net worth, minorities and liabilities 4,494,782 3,602,089 892,693 



OUR MISSION IS TO CREATE VALUE FOR OUR 

SHAREHOLDERS, THROUGH THE SHOPPING CENTRE 

BUSINESS, WHILE TAKING INTO ACCOUNT ITS 

SOCIAL RESPONSIBILITIES TOWARDS OTHER 

IMPORTANT STAKEHOLDERS, AS WELL AS ITS 

ENVIRONMENTAL RESPONSIBILITIES. 

Corporate Responsibility 

A year of progress 

The strategy of Sonae Sierra’s Corporate Responsibility programme 

remained unchanged during 2007. Its main focus is on the issues 

we believe are the most significant facing our business today, and 

the challenges and opportunities they present. The key issues 

include climate change, water use, waste management, land use, 

safety and health, the business chains involving our suppliers and 

tenants, and community and employee relations. 

Excellence rewarded 

We were delighted when, in October, we won a Dupont Safety 

Award for our Personæ project. This ground-breaking safety & 

health programme focuses on the need to create a culture of 

accident anticipation and prevention at all our centres. Its aim is 

to build on the involvement of everyone working in our centres – 

our staff and tenants alike – so that neither we nor our 

stakeholders have to rely solely on the work of a team of safety 

professionals. 

The ultimate objective of Personæ is to reduce to zero the 

incidence of preventable, safety-related accidents in our shopping 

and leisure centres. Its operation is based on 14 elements of 

control in a Safety & Health Management System, with each one 

complementing the others. One of the elements includes a series 

of Safety Preventive Observations (SPOs), carried out by our staff 

in common areas and tenants’ units, which identify operational 

short-comings such as a blocked emergency exit in a storeroom 

that could cause safety-related accidents. 

We are pleased to report that, during 2007, the number of hazards 

recognised by staff conducting SPOs fell to eight per hour – about 

half the level since the introduction of the Personæ project. 

On another front, we were also very pleased to win the first-ever 

ReSource award, presented by the International Council of 

Shopping Centres in Europe to the developer, project, manager or 

tenant who, in the Council’s opinion, most consistently takes a 

long-term view of sustainability. In presenting the award, the 

President of the Jury, Stephen Pragnell, described two of our 

most recent developments as “excellent examples of the high 

level of innovation and quality the company has developed with 

the purpose of reaching profitability and sustainability for each of 

its shopping centres”. 

We also achieved the distinction of being ranked first in the 

“Climate Change and Corporate Management – A Response 

Index”, which is promoted by Euronatura, a Portuguese nongovernmental 

organisation. 

Winners of Dupont Safety 

Award for Personæ project 

Ranked first in Euronatura’s 

“Climate Change and 

Corporate Management – 

A Response Index” 

First-ever winners of ICSC 

ReSource Award for 

sustainability 

15 more centres granted 

ISO 14001 certification 


Environmental management 

During the year we once again achieved an overall decrease in our 

electricity consumption per m 2 of shopping centre GLA and a 

corresponding reduction in our greenhouse gas emissions. 

We also achieved an increase in waste recycling which resulted in 

a reduction in the volume of waste we are sending to landfill. 

As part of our plan to ensure that best practice is achieved in the 

environmental management of all our shopping and leisure centres, 

we submitted a further 11 operating centres for ISO 14001 

certification during the year. We are pleased to report that all of 

them are now certified. Two of them, Parque D. Pedro and Penha 

Shopping in São Paulo, were the first-ever centres of its kind to 

receive this ISO certification in Brazil. 

We also submitted three recently completed projects – 8ª Avenida 

in Portugal, El Rosal in Spain, and Alexa in Germany – and 

another, Freccia Rossia in Italy, which is due for inauguration in 

2008, and can report that each one received ISO 14001 

certification for their construction works. 

Our long-term aim is that every one of our shopping centres in all 

our operating territories achieves ISO 14001 certification. 

On a broader front, our long-term objectives in the areas of 

climate change, water usage, waste and land use are: 

to achieve a 10% reduction in greenhouse gas emissions per 

square metre of GLA by 2020 when compared with the 2005 

level; 

to ensure that water consumption is contained at or below 4 

litres/ visit/ year; 

to reduce the proportion of total waste (by weight) sent to 

landfill in order to achieve a maximum 30% landfill rate; 

to increase the proportion of total waste (by weight) that is 

recycled, recovered or re-used in order to obtain a minimum 

50% recycling rate; 

59 

to promote the use of previously developed land for new 

shopping centre projects and to protect and enhance 

biodiversity wherever possible. 

Risk management 

We remain committed to risk management throughout the 

company. 

During the year, proposals for a Risk Management Framework for 

Sonae Sierra were developed by the Risk Management Working 

Group and approved by the company’s Executive Committee. 

These proposals bring together the risk management activities 

practiced by our various business units, with a view to them 

being governed by a centralised, global outlook in future. 

2007 also saw us focusing on the need for improved instruments 

for the management of development risks. Two reports were 

presented to the Board covering risks anticipated before 

commitment and after commitment to any development project. 

We have also continued with the deployment of an integrated 

system for the control of project costs, based on the APSIS 

platform. This will be rolled out in Portugal, Spain and Italy 

during 2008. 

Our financial risk management policies will be refined over the 

coming year, and we will be introducing improvements to our 

monitoring and management systems over the same period. 

The detection and analysis of new risks will continue across 

the board. 

Human resources 

During the year, we carried out our first climate and satisfaction 

survey designed to gain an understanding of our employees’ 

expectations and concerns about Sonae Sierra. The results have 

enabled us to identify some opportunities for improvement, 

define specific measurable targets and develop relevant 

action plans. 


Corporate Responsibility continued 

We have made some organisational changes to our Human 

Resources department that transfer their responsibility for the 

administrative/financial aspects of their work to the administrative 

departments, thus allowing HR to focus on more strategic issues. 

In November it was announced that Danilo Picolo had been 

appointed as Sonae Sierra’s first independent Ombudsman. Mr 

Picolo has been with the Sonae Group for many years and has 

wide experience of the shopping and leisure centre industry. In 

his new role he will act as a facilitator, working with all Sonae 

Sierra’s stakeholders to establish their needs and hear their 

suggestions for improved processes and their complaints about 

weaknesses, with the aim of ensuring that this developing 

dialogue creates constantly improving working relationships 

between the company and its tenants, their customers and the 

communities we serve. 

During the year we conducted a focused research programme in 

all the countries we operate in with the aim of implementing a 

more flexible working arrangements policy. The results were 

incorporated in a document presented to the Corporate 

Responsibility Steering Committee with recommendations that 

will allow part-time working arrangements, within the defined 

rules, whenever an employee wishes. We have also made 

arrangements for employing people with disabilities and chronic 

diseases, within the current legal framework. 

For more detailed information on our Corporate Responsibility 

management and performance, please refer to our separate 

Corporate Responsibility Report for 2007 or visit our corporate 

portal at www.sonaesierra.com 


THE SONAE SIERRA BOARD OF DIRECTORS, 

WHICH REPORTS TO THE SHAREHOLDERS’ 

GENERAL ASSEMBLY, HAS BEEN AUGMENTED 

WITH THE APPOINTMENT OF ANA GUEDES 

OLIVEIRA AS A NEW EXECUTIVE MEMBER. 

Corporate Governance 

The organisation 

The Shareholders' General Assembly is the highest governing 

body of Sonae Sierra. It appoints the officers of the Shareholders' 

General Assembly, the Fiscal Board, the Remunerations 

Committee and the Board of Directors of the Sonae Sierra group 

and its companies. 

The Sonae Sierra Board of Directors reports to the Shareholders' 

General Assembly and is presided over by a non-executive 

Chairman and has four other non-executive members. This Board 

also includes the Chief Executive Officer (CEO) and another five 

executive members, all with designated responsibilities. In the 

beginning of 2008 the Board was enlarged with the addition of 

another executive member. 

The Sonae Sierra Board of Directors has delegated some of its 

corporate decision-making responsibilities to specialised 

committees. 

The Executive Committee is presided over by the CEO, who also 

presides over the Investment and Finance Committees. The Audit 

and Compliance Committee is presided over by an independent 

professional. 

61 

The Executive Committee is responsible for Sonae Sierra’s 

operational management and for the actions and decisions that 

are not under the remit of either the Board of Directors or any of 

the other three committees mentioned. The Executive Committee 

members include the CEO Àlvaro Portela, Edmundo Figueiredo, 

Pedro Caupers, Fernando Oliveira, Antonio Casanova, João 

Pessoa Jorge and Ana Guedes Oliveira. It reports to the Board of 

Directors and may invite other senior executives and executives to 

attend its meetings. 

The Board of Directors meets five times a year. The Investment 

Committee and the Finance Committee each meet eleven times a 

year and the Executive Committee meets once every two weeks. 

The Audit and Compliance Committee meets three times a year. 


Board of Directors 

Paulo Azevedo 

Chairman 

Paulo Azevedo joined the Sonae Group in 

1988, occupying several directorate 

positions. In 1996 he was named 

Administrator of Modelo Continente SGPS, 

in charge of the Sales and Information 

Systems area. In 1998, he became Chairman 

of the Executive Committee of Optimus, 

Telecomunicações, SA., a position he kept 

until 2000. Later, he became Chairman of 

Sonaecom’s Executive Committee. In 2007 

he was named CEO of Sonae SGPS, as well 

as Chairman of the Board of Directors of 

Sonaecom, Sonae Sierra and Sonae 

Distribuição. 

Besides his degree in Chemical Engineering 

from the "École Politechnique Federal de 

Lausanne", Paulo Azevedo also has an MBA 

from the Instituto Superior de Estudos 

Empresariais (Universidade do Porto). 

Jeremy Newsum 

Non-Executive Director 

Jeremy Newsum is Group Chief Executive of 

Grosvenor. 

Jeremy originally joined Grosvenor in 1976, 

having graduated from Reading University. 

He left the company after two years, but 

returned in 1987 and was appointed Chief 

Executive in 1989. 

As a specialist in real estate investment and 

development, he is a director of TR Property 

Investment Trust Plc, a member of the 

Council of Imperial College London and a 

Trustee of the Urban Land Institute. 

Ângelo Paupério 


Ângelo has been a non-executive Board 

Director of Sonae Sierra since 2000. 

His main executive responsibilities are as 

Chairman of Sonaecom’s Executive 

Committee and Board Nomination and 

Remuneration Committee; Executive Vice 

Chairman of the Sonae Group holding 

company, Executive Chairman of Sonae 

Capital and Sonae Turismo, and Board 

Director of Modelo Continente, all of which 

are sub holdings of Sonae. 

He graduated as a Civil Engineer from Porto 

University and has an MBA from Porto 

Management School. 

Benoit Prat-Stanford 


Benoit Prat-Stanford has been with 

Grosvenor since 2000 and is the Finance 

Director for Continental Europe. His career 

includes a period as military attaché to the 

French Embassy in Italy. He has also worked 

for Arthur Andersen and United 

Technologies. 

With a Business degree and an MBA gained 

in Boston, he has lived and worked in Paris, 

Boston, Rome, Brussels and London. 

Neil Jones 



Neil Jones is Chief Executive of Grosvenor 

Continental Europe. He is based in Paris, 

from where he oversees Continental 

European business. 

Neil joined Grosvenor in 1997 and has 

worked in London, Brussels and Hong Kong. 

He is a non-executive director of Sonae 

Sierra SGPS. 



Álvaro Portela was appointed CEO of Sonae 

Sierra in 1989. His particular responsibilities 

include Safety & Health, Corporate 

Communications, Environment and 

Institutional Relations. 

Álvaro has a degree in Mechanical 

Engineering from the Faculdade de 

Engenharia da Universidade do Porto, an 

MBA from the Universidade Nova de Lisboa 

and an AMP/ISMP from Harvard Business 

School.

Edmundo Figueiredo 

Director, CFO 

Edmundo Figueiredo is the CFO of Sonae 

Sierra and a member of the Sonae Group 

Finance Committee. His particular 

responsibilities include Internal Audit; Legal, 

Fiscal and Mergers & Acquisitions; Finance, 

Planning & Control; HR & Back-Office. 

Edmundo joined the Sonae Group in 1989, 

as Financial Controller of the company’s Real 

Estate activities, which later became Sonae 

Sierra. 

He has a degree in Finance from the Lisbon 

School of Economics (ISCEF). 

João Pessoa Jorge 

Director, Brazil 

João Pessoa Jorge joined the Sonae Group in 

1983 and was one of the executives involved 

in starting the Group’s Real Estate business. 

Since 1998 he has been living in São Paulo, 

where he is responsible for all aspects of the 

company’s business in Brazil. 

João has a degree in Civil Engineering gained 

at the University of Porto and a MBA from 

Kent State University in Ohio. 

63 

Fernando Guedes Oliveira 

Director, Developments Europe 

Fernando Oliveira joined the Sonae Group in 

1984 and moved to Sonae Sierra in 1991. 

He was Project Manager of two of the 

company’s award-winning shopping Centres: 

ViaCatarina and Centro Vasco de Gama. 

Currently he is responsible for the 

implementation of Sonae Sierra’s shopping 

and leisure centre development programme 

in Europe. 

With a degree in Civil Engineering, University 

of Porto, and an MBA from ISEE. Fernando 

also gained an AMD at Harvard Business 

School, USA. 

Pedro Caupers 

Director, Shopping Centre Management, 

Europe 

Pedro Caupers joined Sonae Sierra in April 

1997 and was appointed Board Director in 

1999. He is responsible for all Property 

Management and Leasing activities across 

the European markets where Sonae Sierra 

is active. 

Pedro has a degree in Electrical Engineering 

from Instituto Superior Técnico, a PhD from 

Paris University and an MBA from INSEAD. 

António Casanova 

Director, Key Account Management, 

Marketing and Innovation 

António Casanova joined Sonae Sierra in 

1998, having previously been CEO of 

Optimus, a mobile phone joint venture 

between Sonae Group, Orange and EDP, 

Portugal’s electricity utility. 

He was appointed a Board Director of Sonae 

Sierra in 2005 and has particular 

responsibilities for Marketing, Key Account 

Management and Innovation. 

António has a BSc from the London School 

of Economics, an MBA from Universidade 

Nova de Lisboa and a AMP from Harvard 

Business School. 

Ana Guedes Oliveira 

Director, Investment and Asset 

Management,Europe 

Ana Guedes Oliveira joined Sonae Sierra in 

1987 and later took over the development of 

two major shopping centres in Portugal,. In 

1999 she moved to portfolio management 

and is now in charge of the company’s 

investment division. She has particular 

responsibilities for the portfolio of shopping 

centres in Europe and also acts as manager 

of the Sierra Fund and the Sierra Portugal 

Fund, which are co-owned by Sonae Sierra. 

Ana has a degree in Civil Engineering, 

University of Porto, and an MBA gained at 

ISEE. Ana also gained an AMP from INSEAD 

in France. 


Other Executives 

Adrian Ford 

Responsible for Expansion in Europe (except 

Iberia) 

Adrian Ford has worked with Sonae Sierra 

since its inception. He assumed responsibility 

for the company’s new business in Europe 

outside of Iberia in 1998. 

Adrian studied business studies at Plymouth 

Polytechnic and has a Masters Degree in 

Management and Business Studies from the 

University of Warwick. 

Joaquim Pereira Mendes 

Responsible for the Legal, Tax, Mergers and 

Acquisitions 

Joaquim Pereira Mendes joined Sonae Sierra 

in 1989. He is responsible for the Legal, Tax, 

Mergers and Acquisitions activities of Sonae 

Sierra. 

Joaquim has a law degree gained at the 

Faculdade Direito Universidade Coimbra in 

1980 and is a visiting professor at 

Universidade Portucalense in Porto. 

José Quintela 

Responsible for Conceptual Development 

and Architecture 

José Quintela joined Sonae Sierra in 1987 

and has since led the team responsible for 

the concept and design of all the company’s 

shopping and leisure centres. He is currently 

involved in more than 20 projects at different 

stages of development in all the countries 

where Sonae Sierra is active. 

José has a degree in Architecture, an MBA 

from Universidade Nova de Lisboa and an 

AMP from Harvard Business School. 

José Falcão Mena 

Responsible for Development in Iberia 

José Mena has been responsible for the 

company’s expansion in Iberia since 1998 

and for its development in the same region 

since 2004. 

José has a degree in Civil Engineering from 

Portugal’s Instituto Superior Técnico and a 

post-graduate qualification in Management 

from the Instituto Superior de Ciências do 

Trabalho e da Empresa. He is also 

successfully completed an Advanced 

Marketing Programme for Executives at the 

Universidade Católica de Lisboa. 

Luis Carvalho Marques 

Responsible for Human Resources and Back 

Office 

Luis Carvalho Marques joined Sonae Sierra in 

1992. His previous career as an army officer 

had focused on administration, teaching and 

training. Since 1998, his responsibilities at 

Sonae Sierra have covered all facets of the 

company’s human resources and back office 

functions, including information systems and 

logistics. 

With degrees in Military Sciences and 

Business Administration, the latter gained at 

the Instituto Superior de Ciências do 

Trabalho e da Empresa (ISCTE), Luis is a 

qualified Chartered Accountant and, for 16 

years, was visiting professor of Auditing and 

Accounting in a Portuguese University. 


João Correia de Sampaio 

Responsible for Management in Portugal 

and Spain 

João Correia de Sampaio joined Sonae Sierra 

in 1992 following a military career during 

which he taught at the Portuguese Military 

Academy and was commanding officer of 

several operational and training units. 

He is currently Managing Director of Sierra 

Management Portugal and Sierra 

Management Spain, with responsibilities for 

the management and leasing in the Iberian 

peninsular. 

João has a degree in Military Sciences gained 

at the Academia Militar in Lisbon and an 

MBA from Universidade Nova de Lisboa. 

Pietro Malaspina 

Responsible for Developments in Italy 

Pietro Malaspina joined Sonae Sierra at the 

end of 2000 and has since been responsible 

for the company’s development business in 

Italy. From 2003 to 2006, he was a member 

of the ICSC Europe Advisory Board and is 

currently President of its Italian branch, 

CNCC. 

Pietro has lived and studied in Italy and the 

United States. He has a degree in Political 

Sciences from the Sacred Heart Catholic 

University in Milan.

Joaquim Ribeiro 

Responsible for Finance, Planning and 

Control 

Joaquim Ribeiro joined the Sonae Group in 

1985, starting in the holding company and 

then moving to Sonae Indústria. From there, 

he moved to London for six years to work 

for Sonae International. 

In 1995 he joined Sonae Sierra to work 

in the financial department, becoming 

Director, Finance, Planning and Control, 

in 2006. 

Joaquim has a degree in Economics from 

Faculdade de Economia do Porto, an MBA 

from Universidade Nova de Lisboa and an 

MSc in Property Investment from the City 

University, London. 

Ingo Nissen 

Responsible for Developments in Romania 

Ingo Nissen joined Sonae Sierra in 2000, 

when the company began operations in 

Germany. In 2007 he was appointed 

Director, Development Romania, with 

particular responsibilities for the 

Development activities t in that country. 

Ingo has a degree in Civil Engineering from 

the Technical University in Braunschweig. He 

gained his PhD at the Technical University in 

Munich. 

65 

Thomas Binder 

Responsible for Developments in Germany 

With more than 20 years’ experience gained 

in project and lease management in the 

German shopping centre, business parks and 

commercial property sector, Thomas Binder 

joined Sonae Sierra as CEO of Sonae Sierra 

Developments Germany GmbH in 2006. 

Thomas studied German law in Bochum and 

Kiel, and has real estate management degree 

gained at Wirtschaftsakademie Kiel. 

Carlos Felipe Fulcher 

Responsible for Development in Brazil 

Felipe joined Sonae Sierra in 2001 as a 

shopping centre Development Manager with 

responsibilities in Portugal and Spain. In 

2004 he was appointed General Manager of 

the company’s business in Greece, with 

overall responsibility for all aspects of Sonae 

Sierra’s operations in that market. He was 

appointed Sonae Sierra Brazil’s Head of 

Development in February 2008. 

Educated at universities in Europe and the 

US, Felipe’s most recent executive studies 

have included a Harvard Business School 

course on Developing Future Leaders. 

From top to bottom, left to right 

Adrian Ford 

Joaquim Pereira Mendes 

José Quintela 

José Falcão Mena 

Luís Carvalho Marques 

João Correia de Sampaio 

Pietro Malaspina 

Joaquim Ribeiro 

Ingo Nissen 

Thomas Binder 

Carlos Felipe Fulcher 

César Garbin 

Vítor Nogueira 

César Garbin 

Responsible for Property Management in 

Brazil 

César joined Sonae Sierra Brazil in 2003 after 

18 years’ in the Brazilian retail and real 

estate business. As the company’s Operations 

Director, he has wide-ranging responsibilities 

for the day-to-day management and leasing 

of Sonae Sierra Brazil’s nine shopping 

centres. His work covers all aspects of Sonae 

Sierra Brazil’s activities, including planning 

new procedures designed to sustain the 

company’s progress. 

Vitor Nogueira 

Responsible for Property Management in 

Germany, Greece and Romania 

Vitor’s initial responsibilities with Sonae Sierra 

included overseeing operations leading up to 

the inauguration of five of the company’s 

Iberian shopping centres. More recently, he 

led the Sierra Management support team 

responsible for 17 shopping centres in Spain. 

In April 2007, his responsibilities shifted to 

the company’s non-Iberian operations. Since 

December he has focused on Germany, 

Greece and Romania. 

With an MBA from IEDE in Madrid, Vitor has 

been a visiting lecturer on EUDEM business 

school’s MBA course. 


OUR AIM IS TO BE THE BEST INTERNATIONAL 

SPECIALIST IN THE SHOPPING AND LEISURE 

SECTOR. OUR THANKS GO TO THE MANY 

PEOPLE – IN PARTICULAR OUR EMPLOYEES – 

WITHOUT WHOM WE COULD NOT ACHIEVE 

OUR OBJECTIVES. 

The future 

Sonae Sierra aspires to be the best international specialist 

in the shopping and leisure centre sector and a preferred 

partner in any market it operates in. 

The company will also analyse new markets and opportunities, 

whether by constantly expanding its shopping centre 

development pipeline or through the acquisition of already 

operational shopping centres, complemented by the creation 

of new alliances with local partners or significant institutional 

investors. 

Outlook 

Sonae Sierra knows that it will only achieve its future objectives 

by paying attention to the way in which it implements its 

business in the present. 

The Company will continue to blaze a trail of success by 

developing and using its knowledge and imagination and by 

maintaining high standards of professionalism and innovation 

in all its undertakings. 

Acknowledgements 

The Board of Directors would like to thank all the tenants 

of the Sonae Sierra shopping centres, the authorities, financial 

institutions and suppliers for all the support and confidence 

that they have shown. 

We would also like to thank the Statutory Auditor for his 

cooperation in monitoring our activity. 

Our thanks go to our employees for their efforts throughout 

this year, which have been well reflected in the results achieved 

by Sonae Sierra. 


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PORTUGAL 

PORTO 

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FAX: +351 22 010 4698 

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TELEPHONE: +351 21 751 5000 

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TELEPHONE: +39 02 6236 9001 

FAX: +39 02 62369 0230/1 

www.sonaesierra.com 

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TELEPHONE: +49 211 4361 6201 

FAX: +49 211 4361 6202 

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TELEPHONE: +40 21 36 10 910 

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