Parque Arauco Announces New Development Projects, Increasing Investment Plan to US$730 million

SANTIAGO, Chile--(BUSINESS WIRE)--Parque Arauco S.A. (SSE: PARAUCO) (Bloomberg: PARAUCO:CI) has announced three new greenfield projects: a neighborhood shopping center and a premium outlet mall in Chile, and a premium outlet mall in Peru. The company also announced expansion projects in MegaPlaza Norte, MegaPlaza Chimbote, MegaPlaza Express Chincha and MegaPlaza Express Villa Chorrillos in Peru.

Parque Arauco will develop Arauco Antofagasta, the company´s first shopping center in the north of Chile. The project, owned 55% by Parque Arauco, will require a total investment of US$34 million and will incorporate 10.500 m² of GLA. Arauco Antofagasta will be the company´s first neighborhood shopping center in Chile, and the sixth overall, including the company´s five neighborhood shopping centers in Peru.

The company also announced the development of its first premium outlet mall in the north of Chile and its fourth in the country, Arauco Premium Outlet Coquimbo. Owned 100% by Parque Arauco, this shopping center will require a total investment of US$ 12 million and will contribute 6.000 m² of GLA.

Additionally, Parque Arauco will develop Outlet Lurin, located in the south of Lima. The project, owned 100% by Parque Arauco, will require a total investment of US$25 million and will incorporate 8.500 m² of GLA. Outlet Lurin will be Parque Arauco´s second outlet mall in Peru.

Finally, Parque Arauco announced expansion projects in MegaPlaza Norte, MegaPlaza Chimbote, MegaPlaza Express Chincha and MegaPlaza Express Villa Chorrillos in Peru. These four expansion projects, owned 50% by Parque Arauco, will demand a total investment of US$ 39 million and will contribute 21.500 m² of total GLA.

GREENFIELD PROJECTS
	NAME OF THE PROJECT	Location	Format	Estimated Opening Date	Total GLA (m²)	% Ownership	Owned GLA (m²)	Total Investment (MMUS$)
	Arauco Premium Outlet Coquimbo	Chile	Outlet	1H16	6,000	100.0%	6,000	12
	Others Stripcenters Chile (Arauco Express)	Chile	Strip Center	Under development	14,000	51.0%	7,140	30
	Arauco Antofagasta	Chile	Neighborhood	Under development	10,500	55.0%	5,775	34
	Megaplaza Pisco	Perú	Neighborhood	1H15	14,000	50.0%	7,000	16
	Others Megaplaza	Perú	Various	Under development	40,000	50.0%	20,000	46
	Outlet Lurín	Perú	Outlet	1H16	8,500	100.0%	8,500	25
	Others SCP	Perú	Strip/Outlet	Under development	25,000	51.0%	12,750	73
	El Quinde Cajamarca	Perú	Regional	1Q15	30,000	100.0%	30,000	38
	El Quinde Ica	Perú	Regional	1Q15	37,000	100.0%	37,000	47
	Parque La Colina	Colombia	Regional	1H17	63,500	55.0%	34,925	289
	Subtotal				248,500		169,090	610
EXPANSION PROJECTS
	NAME OF THE PROJECT	Location	Format	Estimated Opening Date	Total GLA (m²)	% Ownership	Owned GLA (m²)	Total Investment (MMUS$)
	Boulevard de Lujo en Parque Arauco Kennedy Expansion	Chile	Regional	1H15	1,000	100.0%	1,000	9
	Arauco Premium Outlet Buenaventura Expansion	Chile	Outlet	1Q15	6,500	100.0%	6,500	20
	Megaplaza Express Villa Chorrillos Expansion	Perú	Neighborhood	2H15	500	50.0%	250	2
	Megaplaza Express Chincha Expansion	Perú	Neighborhood	2H16	1,000	50.0%	500	2
	Megaplaza Chimbote Expansion	Perú	Regional	2H17	2,500	50.0%	1,250	4
	Megaplaza Norte Expansion	Perú	Regional	Under development	17,500	50.0%	8,750	31
	Subtotal				29,000		18,250	68
	Total Land							52
	TOTAL				277,500		187,340	730

Parque Arauco has 728.500 m² of total GLA in Chile, Peru, and Colombia. The company inaugurated its first shopping center in Chile in 1982, entered Peru in 2006 and Colombia in 2008. The company´s assets include six regional shopping centers, three premium outlet malls and eleven strip centers in Chile; four regional shopping centers, five neighborhood centers, one premium outlet mall and one strip center in Peru; and two regional shopping centers in Colombia as well as a large land bank to support the company´s future growth plans. For more details, visit the company´s website: www.parauco.com.