Sonae Sierra

SONAE IMOBILIÁRIA SGPS, SA - Sociedade Aberta

Lugar do Espido - Via Norte, 4471-909 Maia
Capital Social: Eur 187 125 000
C.R.C. Porto (Matricula nº. 2252A)
Pessoa Colectiva Nº. 502 290 811

1~~^st~~ quarter of 2001

Sonae Imobiliária: Net consolidated profit grows 16,8%

Net consolidated profit reach Euro 6,2 million (PTE 1,24 billion), 16,8% growth
The Profit before Tax is Euro 9.4 million (PTE 1.883 billion), an increase of 28.8% on 2000
Operating Results reached Euro 13.5 million (PTE 2.7 billion)
Operating Income totalling Euro 69.6 million (PTE 13.945 billion), an increase of 48.7 %
Share price up 14,6%
Market capitalisation of the Company was Euro 539.2 million (PTE 108 billion)

INTRODUCTION

Sonae Imobiliária's Net Consolidated Profit after Minority Interests (non-audited) for the 1^st quarter of 2001 increased by 16.8 %, reaching Euro 6.2 Million (PTE 1.24 billion) versus Euro 5.3 million (PTE 1.062 Billion) in the corresponding period of 2000.

During this 1^st quarter, Sonae Imobiliária's share price increased by 14.6%, in relation to 29 December 2000, and closed the quarter at Euro 14.38. The corresponding market capitalisation of the Company was Euro 539.2 million (PTE 108 billion). During the same period, the BVL-30 index lost 5.26%. The Company's share price beat also the EPRA (European Public Real Estate Association) benchmark: their Eurozone index returned 8.7% in the period, versus the 14.6% for Sonae Imobiliária.

As at 31 December 2000, the real estate assets of Sonae Imobiliária were independently valued at Euro 1.952 billion (PTE 391 billion), of which Euro 1.121billion (PTE 225 billion) are attributable to the Company. The Net Asset Value corresponding to those assets was Euro 752 million (PTE 150.7 billion).

SHOPPING CENTRES

The overall performance of our shopping centres was in line with expectations, with sales continuing their overall growth.

Total sales in our centres in Portugal increased by 9.7% in relation to the corresponding period in 2000. Part of the growth had to do with the inclusion in the portfolio of Sintra Retail Park (inaugurated in November 2000) but the biggest contributor is organic growth - on a like-for-like basis, growth was more than 8%.

MadeiraShopping was inaugurated in March 2001, with an excellent acceptance from the public. As of today, the centre is 92% let although some shops that are let are not yet open to the public - there are 9 shops to let.

Following this inauguration, Sonae Imobiliária became owner or co-owner of 10 shopping centres, 3 shopping galleries and 1 retail park, in Portugal, with a total Gross Letable Area (GLA) of 501 850 m2.

As planned, AlgarveShopping opened to the public on the 24 April and we are confident that it will also become a great success. On the same day, Parque Principado in Oviedo, Spain, was also inaugurated. Sonae Imobiliária (with 25%), Grupo Lar Grosvenor (25%) and Whitehall Funds (50%) are committed to acquiring this shopping centre developed by Eroski and Promodeico. We hope that the final acquisition deed be signed during the second quarter of 2001. Given that no partner will have overall control, Sonae Imobiliária will consolidate this investment on a proportional basis.

In Málaga, Spain, construction is progressing on Plaza Mayor, a leisure and retail centre held 75% by Sonae Imobiliária and 25% by Castle City. Inauguration is still expected to occur in the spring of 2002.

The shopping centres managed in Spain by Sonae Imobiliária had a satisfactory performance, in line with last year's. Total sales increased by 37.5% but most of this increase resulted from the inclusion of the Urbil centre in the portfolio. Like-for-like, sales increased by 1.2%, helped by a good performance in Bilbondo, the largest centre in the portfolio

We continue work on three other projects in Europe already discussed in the past: Aegean Park in Athens (Greece), Avenida M40 in Madrid (Spain) and Multi Theme Centre in Dortmund (Germany).

In Europe we continue to look for new projects, namely in Italy in France.

In Brazil, the performance of the five shopping centres co-owned by Sonae Enplanta (held 50% by Sonae Imobiliária) and managed by Unishopping (held 100% by Sonae Enplanta) were in line with expectations. Sales grew by 1.6% in relation to the first quarter of 2000, specially helped by a good performance in Metropole, the largest in the portfolio. Construction of Parque Dom Pedro, a project in Campinas, (SP), held 88% by Sonae Imobiliária and 12% by Sonae Enplanta, is progressing as planned. We continue to analyse other projects for shopping centres in Brazil.

CAR PARKS

During this quarter, SPEL, a Portuguese car park specialist held 50% by Sonae Imobiliária and 50% by

SABA (Spain), has continued work on its investment program in the car parks at St. Cristina in Viseu and Infante, Leões, Carlos Alberto and Cordoaria in Porto. On the 23^rd April, the company signed the concession contract with the Matosinhos Municipality for the construction and operation of three car parks and parking meter zones, already covered in previous reports.

SPEL continues to analyse new business opportunities and has presented proposals in two public tenders. The first, for the construction and operation of an underground car park with 309 places and parking meter zones in Leiria; the second, for the construction and operation of a surface car park, with 390 places at Estádio Universitário in Lisboa.

SPEL has also finalised an agreement with Sociedade Nortenha de Gestão de Bingos (Estoril Sol Group) for the letting of the 8^th floor of the Silo Auto car park, in Porto, for F C Porto bingo.

RESIDENTIAL DEVELOPMENT

Praedium is the Sonae Imobiliária subsidiary specialising in high-quality residential development in Portugal. During the 1^st quarter, it completed Condomínio Douro Foz, in Porto, signed an agreement with Grupo Lar, for the joint-promotion of a residential development in Campolide, Lisboa, and continued construction and marketing of Edifício Seda, the second residential building in Quinta das Sedas in Matosinhos.

In Condomínio Douro Foz, apartments and shops are being delivered to the customers and only 3 apartments and 4 shops remain to be sold. In Edifício Seda, 63 of the 78 apartments are sold and delivery is expected to occur in the first quarter of 2002. Still in this first quarter, we have submitted to the Matosinhos Municipality, the architectural project for an office building to be built at Quinta das Sedas - this building is already pre-sold. The detailed technical projects for Phase II of Quinta das Sedas, to be developed in the site of the old EFANOR plant, were also submitted to the Municipality.

FINANCIAL POSITION AND RESULTS

In consolidated terms, Sonae Imobiliária closed the 1st quarter of 2001 with Operating Income totalling Euro 69.6 million (PTE 13.945 billion), an increase of 48.7 %. This increase resulted from the growth in rental and other operating income in our shopping centres, the additional income from Sintra Retail Park (inaugurated in November 2000) and from the 50% participation in Vasco da Gama, that the Company acquired in August 2000, plus the sales registered in Praedium.

Operating Results reached Euro 13.5 million (PTE 2.7 billion), an increase of 40 % on last year. The Net Financial Cost continues to increase (Euro 3.8 million or PTE 765 million) given that additional assets in operation (the two described above) are being added to the portfolio.

The Profit before Tax is Euro 9.4 million (PTE 1.883 billion), an increase of 28.8% on 2000. Out of that Profit before Tax, the share attributable to Minority Interests is Euro 0.2 million (PTE 40) relating to profits in Praedium.

The Net Profit (after Minorities) is Euro 6.2 million (PTE 1.24 billion) and corresponds to a growth of 16.8 % on the first quarter of 2000.

PROFIT & LOSS ACCOUNTS BY BUSINESS (PRO-FORMA)

We are presenting pro-forma Profit & Loss accounts by business, in the same format used in the 2000 Annual Accounts.

Shopping Centre Investment