Parque Arauco Consolidates Growth Plan for Over US$ 500 Million, Announcing the First Multifamily Building Integrated Into a Shopping Center in Chile

SANTIAGO, Chile--(BUSINESS WIRE)--Parque Arauco S.A. announced during the Annual General Shareholders' Meeting its strategy of expanding iconic assets, providing details of a new phase of expansion at its main asset, Parque Arauco Kennedy, in Chile, as well as the conversion and expansion project of its asset MegaPlaza Ica in Peru.

As part of the third phase (Kennedy Phase) of Parque Arauco Kennedy's Master Plan, the company takes a significant strategic step by incorporating, for the first time, a multifamily building within a shopping center. The new tower will feature 414 residential units, 1,300 sqm of amenities, and a rooftop. The project initially involves an approximate investment of US$ 60 million.

It is worth noting that its first stage (Rosario Phase) was inaugurated in 2021, including the new Rosario sector, where the 25,000 sqm Falabella Flagship store is located, along with additional retail stores and new parking lots. Meanwhile, Phase 2 (Cerro Colorado Phase) is currently under development and will feature a new entrance to the shopping center, parking lots, six floors of retail space, and a 23,400 sqm office tower; all facing the new Metro station under construction in Parque Araucano. The new retail space is expected to open in 2025, and the office tower in 2026.

Eduardo Pérez Marchant, CEO of Parque Arauco, commented, “We made the decision to incorporate, for the first time, a multifamily building in a shopping center. After conducting a thorough analysis of different real estate uses and reviewing international trends, we came to the conclusion that there is a lot of value in promoting the first urban center in Chile under the concept of "work, live & play", meaning where you can work, live, shop, and have fun all in one place.”

With this announcement, the company will have seven multifamily buildings at a regional level. Three in Chile: Calle Concón (Estación Central), Calle Mitjans (Macul), and Av. Kennedy (Las Condes); one in Peru with the Calle La Mar project (Lima); and three in Colombia with Calle 72, Calle 94 in Bogotá, and Ciudad del Río in Medellín.

Additionally, the company announced the execution of its Master Plan for MegaPlaza Ica. This shopping center is located in the city of Ica, Peru, and is the second-largest asset in terms of leasable area (GLA) for Parque Arauco in that country and the third most important in terms of EBITDA.

The expansion of 6,500 sqm of leasable area includes the construction of a new open air plaza in a Boulevard format. This sector will create a high-quality space for public use, replacing the current parking with green areas and entertainment alternatives. It also includes underground parking, a new financial and service sector, conversion of the old banks area into new retail space, a gastronomic area, a new SmartFit gym, drop-off points for taxis and private vehicles, and improvement of pedestrian access.

Eduardo Pérez Marchant commented, “Given its relevance and growth potential, we decided to include MegaPlaza Ica in the company's general strategy for expanding iconic assets. This first phase of conversion is part of an ambitious Master Plan assumed when acquiring the city's best mall, incorporating new green areas, enriching the commercial mix, and focusing commercial efforts on improving the experience of our tenants and end customers.”

The asset, originally named El Quinde Ica, was incorporated into Parque Arauco's portfolio in 2015 with the acquisition of Ekimed. Since then, significant improvements have been made in infrastructure and the commercial mix of the shopping center, currently featuring three commercial levels and brands such as Falabella, Ripley, Maestro (Sodimac), Metro, SmartFit, and H&M. In 2023, the shopping center was part of a rebranding process, and was renamed “MegaPlaza Ica”.

About Parque Arauco:

Currently, Parque Arauco has a total of 1,178,000 m² of leasable area (ABL) in Chile, Peru, and Colombia. The company inaugurated its first shopping center in Chile in 1982, entered Peru in 2005, and Colombia in 2008. For more details, visit the company's website: www.parauco.com.