With regard to the transaction announced on April 25, 2019, Parque Arauco S.A. via its subsidiary, Inversiones Colombianas Arauco S.A.S. (“PASA Colombia”) has advanced in the process and now signed a binding agreement for the acquisition from Colvalor Propiedades (“Colvalor”) of 52.5% of Fideicomiso P.A. Alegra Barranquilla (“the Trust”), owner of a regional shopping center project (Parque Alegra) in Barranquilla, Colombia.
PASA Colombia and Colvalor have established regulations for the corporate governance of the Trust, specifying terms and conditions that outline the project’s construction, commercialization, and operation. Additionally, since the previous announcement, the price of the transaction changed slightly to COP$ 114,600 million (approximately US$36 million). This transaction is dependent on several standard precedent conditions for closing.
Parque Alegra will have an estimated GLA of 53,300 m2 and, following its construction, the Trust will sell Supertiendas Olímpica S.A. (former owner of the land on which the shopping center will be located) a 3,300 m2 supermarket space, which will form part of the shopping center. Therefore, Parque Arauco will have 52.5% ownership of the Trust’s 50,000 m2 of GLA. The remaining 47.5% of the Trust may be acquired as of the start of the mall’s fifth year of operation, and during a period of 12 months, through put and call options.
“This investment represents Parque Arauco’s entrance into Barranquilla, one of the main cities in Colombia” said Eduardo Pérez Marchant, CEO of the International Division of Parque Arauco. “With this acquisition, Parque Arauco continues to strengthen its position as the main international retail real estate operator in Colombia reaching 205,000 m2 of GLA in the country.”
Additional Parque Alegra project information: The project is in the initial stage of construction and is expected to open toward the end of the second semester of 2021. It is located in the southern part of Barranquilla on Boyacá Avenue, one of the main roads that connects the northern and southern sectors of the city, as well as the Barranquilla Airport. The anchor stores of the project will be a department store (Falabella), a supermarket (Olímpica), a movie theater (CineColombia) and a children’s entertainment area (Playland). The shopping center will have more than 300 stores, a food court, a restaurant area, large common areas and underground parking, and is expected to be the leading shopping center in southern Barranquilla. The total investment value for the project is expected to be US$ 135 million, of which approximately US$ 69 million will be financed with debt.
About Parque Arauco
Currently, Parque Arauco has 1,057,500 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. 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.