SANTIAGO, Chile--(BUSINESS WIRE)--Parque Arauco S.A. (SSE: PARAUCO) (Bloomberg: PARAUCO:CI) (“Parque Arauco” or “PASA”) through its fully owned subsidiaries, Parque Arauco Internacional S.A. and Arauco Holding Peru S.A.C., together called “PASA Group”, announces that is has signed a binding memorandum of understanding for a business combination with the Wiese Family (“Wiese Group”) resulting in the formation of a new entity (“Newco I”).
Newco I will include Larcomar, Parque Lambramani, InOutlet Faucett and Lurin, Viamix Colonial, Chorrillos and Malvinas, El Quinde Ica, El Quinde Cajamarca, and Jesus María, which are all fully owned by PASA Group and currently amount to 165,500 m2 of GLA. This new entity will also include MegaPlaza Norte, Chimbote, Cañete, Pisco, Jaén, Huaral, Express Villa El Salvador I and Villa El Salvador II, Villa Chorrillos, Chincha and Barranca. These MegaPlaza assets are owned 50% by PASA Group and 50% by the Wiese Group and have a total GLA of 239,500 m2.
With this agreement, PASA Group will control Newco I, with a 70% ownership and the Wiese Group will own the remaining 30% of this entity. PASA Group and Wiese Group have agreed to a call and put option for the Wiese Group participation in Newco I that can be exercised one year from the signing of this agreement. The price for this call and put option has been set at ThPEN$ 583,450 (approximately US$ 178 million dollars).
The landbank in Huaraz and San Juan de Lurigancho will be developed by both parties, each with a 50% participation. The remaining MegaPlaza landbank will be held for sale.
Parque Arauco entered into Peru in 2006 when it acquired a participation of MegaPlaza Norte, a shopping center in the northern part of Lima. Through this relationship, Parque Arauco and the Wiese Family created a strategic Joint Venture which eventually developed eleven shopping malls throughout Peru.
Parque Arauco has 1,018,000 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 seven regional shopping centers, four premium outlet malls and fourteen strip centers in Chile; six regional shopping centers, ten neighborhood centers, two premium outlet malls and three strip centers in Peru; and three regional shopping centers, and one outlet 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.