Parque Arauco Expands Growth Potential Through Asset Sale

Parque Arauco S.A. Sells 49% Share in Todo Arauco SpA

Parque Arauco S.A. has made headlines with its recent transaction, successfully selling a 49% stake in Todo Arauco SpA, the owner of notable Arauco Premium Outlets. This strategic maneuver represents a significant step forward for the company, enhancing its financial flexibility and positioning for future growth opportunities.

Transaction Details

The sale encompasses a portfolio that includes some of the most prominent shopping destinations, such as Arauco Premium Outlets in Buenaventura, Curauma, Coquimbo, and San Pedro de la Paz. Administradora de Fondos de Pensiones Habitat S.A. has acquired this stake on behalf of its various funds, marking a transaction valued at UF 4.25 million, equivalent to about US$173 million. Following the settlement of the company's debts, the total equity valuation is pegged at UF 1.82 million, around US$74 million.

Financial Implications of the Sale

This transaction is projected to provide Parque Arauco with a significant boost in its capital. With approximately UF 893,606 (approximately US$36 million) being allocated for the 49% minority stake, the company's management remains optimistic about utilizing these resources to further develop the business.

Ongoing Management and Earnings

Post-transaction, Parque Arauco retains full management responsibilities over the assets, which have demonstrated impressive operating income. As of Q2 2024, the assets reported a Net Operating Income (NOI) of around UF 338,000 (approximately US$14 million). This performance underlines the profitability and stability of Parque Arauco’s investments.

Strategic Growth and Future Acquisitions

Eduardo Pérez Marchant, the CEO, emphasized the strategic nature of this sale. He noted that selling minority stakes in established assets helps recycle capital, which will be reinvested into new commercial developments and key acquisitions. This proactive approach is essential as Parque Arauco is currently reviewing a potential acquisition of Open Plaza Kennedy, pending necessary regulatory approvals.

History of Strategic Sales

The recent sale continues a trend for Parque Arauco, which has previously engaged in similar transactions in Chile and Colombia. These strategic maneuvers began as early as 2019 when the company sold a shopping mall portfolio to Ameris Parauco Fondo de Inversión and later transferred assets to Fondo de Inversión Banchile Rentas Inmobiliarias I.

About Parque Arauco

Founded in 1982 with the launch of its first shopping mall in Chile, Parque Arauco has expanded its footprint to Chile, Peru, and Colombia, boasting a total Gross Leasable Area (GLA) of approximately 1,182,000 m². The strategic expansions into Peru in 2005 and Colombia in 2008 have allowed the company to enhance its market reach and overall business portfolio.

Frequently Asked Questions

What percentage of Todo Arauco SpA was sold by Parque Arauco?

Parque Arauco sold a 49% minority stake in Todo Arauco SpA.

What was the estimated value of the transaction?

The transaction valued the assets at UF 4.25 million, approximately US$173 million.

How will the proceeds from the sale be utilized?

Proceeds from the sale will be reinvested into developing new commercial spaces and acquiring strategic assets.

What is the significance of Parque Arauco managing the assets after the sale?

Parque Arauco continues to manage the assets, ensuring operational integrity and benefiting from the ongoing revenue generated.

When was Parque Arauco established?

Parque Arauco was established in 1982 with the opening of its first shopping mall in Chile.

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