Parque

Aug 14, 2023

5-day change Jul. 21 Today at 05:27 pm Share Parque Arauco S.A. (PARAUCO.SN) announced the initiation of the first phase of the reconfiguration and expansion project for its main asset in Peru, Megaplaza Independencia, requiring a USD 33 million investment. Eduardo Pérez Marchant, CEO of Parque Arauco, noted, "The normalization of our activity levels and the return of our financial ratios to optimal levels enable us to resume our growth path. This growth rests upon three pillars: an expansion pillar for our main assets, a growth pillar for new retail properties, and a growth pillar for residential rental expansion (multifamily). With great enthusiasm, we are announcing the expansion of our primary asset in Peru. This project complements the already announced expansion of our main asset in Chile, Parque Arauco Kennedy, as well as the recent announcement of the commencement of construction for Parque La Molina in Peru, our second lifestyle format shopping center in addition to Larcomar." Parque Arauco currently owns 55 real estate assets across Chile, Peru, and Colombia, encompassing a total commercial area of 1,123,500 m². Of this space, 47% is situated in Chile, 35% in Peru, and 18% in Colombia. Megaplaza Independencia stands as Parque Arauco's most relevant asset in Peru, boasting 109,500 m² of leasable space. It ranks as the second most important asset for Parque Arauco in terms of area, following Parque Arauco Kennedy. Megaplaza Independencia hosts major brands in Peru, including Falabella, Ripley, Oechsle, Tottus, Sodimac, H&M, and Zara, and attracts more than 2 million visits per month. The initial phase of the project entails the establishment of the largest gastronomic district in Lima's northern region and the construction of a large central plaza which will contribute positively to the community. The project also involves the creation of a new area for telecommunications service providers and improvements to internal foot traffic. This first phase requires an investment of PEN 123 million (approximately USD 33 million) and should contribute an EBITDA of PEN 11.5 million (approximately USD 3 million) by the third year. Project execution is set to start during the second half of 2023, with a gradual opening until completion during the second half of 2026. Subsequent phases, which will involve additional retail space alongside residential rental expansion (multifamily), will be communicated at a later stage, once the project has progressed further in securing the necessary construction permits. Alejandro Camino, General Manager of Parque Arauco Peru Division, commented, "This initial phase of reconfiguration and expansion is part of an ambitious masterplan in collaboration with Gensler, a global architecture and design firm, and BL Arquitectos, aimed at enhancing the substantial inherent value we see in this asset as an urban nucleus. We are convinced that this new investment in our iconic asset Megaplaza Independencia will contribute improving the lives of the people in Lima Norte, zone in which our mall plays a fundamental role in providing a spacious and secure public space for the community, underscoring our commitment to continue contributing to Peru's development." About Parque Arauco Currently, Parque Arauco owns a total area of 1,123,500 m² of Gross Leasable Area (GLA) in Chile, Peru, and Colombia. The company inaugurated its first shopping center in Chile in 1982, entered the Peruvian market in 2005, and expanded into Colombia in 2008. For further details, please visit the company's website: www.parauco.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20230809348838/en/ Share