SANTIAGO, Chile--(BUSINESS WIRE)--Parque Arauco S.A. (SSE: PARAUCO)(Bloomberg: PARAUCO:CI) (“Parque Arauco” or “PASA”) through its subsidiary, Inversiones Colombianas Arauco S.A.S., announces that it has signed an agreement with Colvalor Propiedades Colombianas S.A.S. for the acquisition of a 55,000 m2 regional shopping center project in Barranquilla, Colombia.
Colvalor, via Fideicomiso P.A. Alegra Barranquilla (“the Trust”), will have 91% ownership of the project (50,000 m2), while the remaining 9% (5,000 m2) will be owned by Supertiendas y Droguerías Olímpica S.A., former owner of the land on which the shopping center will be located.
In this transaction, Parque Arauco will acquire 52.5% of the Trust’s fiduciary rights, with payments amounting to COP$ 108,957 million (approximately US$ 35 million), to be made in various stages. This transaction is dependent on several standard conditions, among them the negotiation of the final contracts, and has until August 30, 2019, to be completed.
The remaining 47.5% of the Trust may be acquired as of the start of the mall’s fifth year of operation, and during a period of 12 months, through put and call options.
The project is in the initial stage of construction and is expected to open in the first semester of 2021. It is located in the southern part of Barranquilla on Boyacá Avenue, one of the main roads that connects the northern and southern sectors of the city. The anchor stores of the project will be a department store (Falabella), a supermarket (Olympic), a movie theater (CineColombia) and a children’s entertainment area (Playland). The shopping center will have more than 300 stores, a food court, a restaurant area, large common areas and underground parking. The investment value for the project is expected to be COP$ 406,000 million (approximately US$ 129 million).
“The announcement of this project is good news for Parque Arauco Colombia because it consolidates us as one of the main real estate developers and operators in the country, with a presence in the fourth most important city in Colombia. Additionally, it give us the opportunity to associate with relevant actors in the regional real estate market such as Grupo Pegasus and Ospinas & Cia, co-managers of Colvalor,” said Eduardo Pérez Marchant, CEO of Parque Arauco Internacional.
Currently, Parque Arauco has 1,053,000 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. In Colombia, Parque Arauco has 155,000 m2 of GLA, with two mixed-use real estate assets (Parque Arboleda in Pereira and Parque Caracolí in Bucaramanga), a regional shopping center (Parque La Colina) and a premium outlet mall (Premium Outlet Arauco Sopó in the outskirts of Bogota). In addition, it has a land bank for the development of future projects. For more details, visit the company’s website: www.parauco.com.