SAO PAULO, Nov 29 (Reuters) - Canadian asset manager

Brookfield and Brazilian shopping center operator

Iguatemi SA are nearing an agreement regarding the

sale of two Sao Paulo malls, according to multiple people

familiar with the matter.

The companies have just set the price for the majority

stakes Brookfield owns in malls Patio Paulista and Patio

Higienopolis, aiming to finalize a deal by the end of December,

a deadline that may be slightly extended due to the year-end

holidays, two of the sources said this week.

The sale of the two shopping centers, valued at close to 2.5

billion reais ($410.5 million) when concluded, will mark

Brookfield's exit from the Brazilian malls sector, the same

sources said, requesting anonymity due to the private nature of

the negotiations.

The Canadian asset manager has decided to exit the malls

sector in Brazil because it considered its investments in these

commercial ventures were mature. The firm has invested in

Brazilian malls since the 1980s.

According to a person familiar with the situation, other

groups have also showed interest in the malls.

Brookfield and Iguatemi, which have been in exclusive talks

regarding the deal, declined to comment.

Brookfield, managing around 200 billion reais in assets in

Brazil, remains active in various other sectors in the country,

including renewable energy, infrastructure, private equity, and

real estate.

Funding for the transaction should be provided by Iguatemi

and BB Asset, through a mall-focused investment fund, and

possibly other real estate specialized funds, according to the

sources.

As per their agreement, Iguatemi will complete the due

diligence process with the goal of signing the final contract

with Brookfield by the end of 2024.

Initially, the transaction was to involve only BB Asset and

Iguatemi. However, the group has decided to possibly include

additional investors due to current unfavorable market

conditions for real estate investment funds seeking to raise new

capital. Talks with these additional investors are ongoing,

three of the sources said.

BB Asset declined to comment.

Earlier this year, BB Asset, through one of its funds, and

Iguatemi also bought a stake in Shopping Rio Sul, in Rio de

Janeiro, from Brookfield.

Brookfield, with approximately $1 trillion in assets across

more than 30 countries, has its origins in a utility company

founded in 1899 in São Paulo, Brazil.

($1 = 6.0896 reais)