SANTIAGO, Chile–(BUSINESS WIRE)–Parque Arauco S.A. (SSE: PARAUCO) (Bloomberg: PARAUCO:CI) (“Parque Arauco”) through its fully-owned subsidiary Arauco Holding Peru S.A.C., together called “PASA”, announces the purchase of the Wiese Group’s 50 percent participation in Inmuebles Panamericana S.A., “IPSA”, through the acquisition of Holding Plaza S.A.
The price of the transaction is ThPEN$ 396,642 (approximately US$ 120 million). Additionally, PASA will assume ThPEN$ 179,866 (approximately US$ 54 million) in financial liabilities from Holding Plaza S.A. The transaction is subject to several conditions, which must be met by April 29, 2019. Furthermore, 15.46% of the shares in Holding Plaza S.A. are owned by the Augusto N. Wiese Foundation, which will be sold upon the authorization of the Foundations Supervisory Council.
As a result of the purchase, Parque Arauco will indirectly have 100 percent ownership in IPSA, which directly or indirectly controls all the MegaPlaza malls: MegaPlaza Norte, Chimbote, Cañete, Pisco, Jaén, Huaral, Villa El Salvador I, Villa El Salvador II, Villa Chorrillos, Chincha and Barranca.
Prior to the conclusion of this transaction the former shareholders of IPSA (PASA Group and Wiese Group) agreed to create a new entity, Desarrollos Panamericana S.A.C., which will control the landbank currently shared by both parties. The land in Huaraz and San Juan de Lurigancho will continue to be developed by both parties, each with 50 percent ownership, while the remaining land will be held for sale.
Parque Arauco entered into Peru in 2006 with a strategic Joint Venture with the Wiese Group. Through this relationship, Parque Arauco and the Wiese Group created and developed eleven shopping malls throughout Peru.
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 2005 and Colombia in 2008. The company’s assets include 8 regional shopping centers, 1 neighborhood center, 4 premium outlet malls and 15 strip centers in Chile; 6 regional shopping centers, 10 neighborhood centers, 2 premium outlet malls and 3 strip centers in Peru; 3 regional shopping centers and 1 premium outlet mall in Colombia, as well as a land bank to contribute to the company’s future growth plans. For more details, visit the company’s website: www.parauco.com.