Parque Arauco Announces Purchase of Arauco Express and Subsequent Sale of 49% Participation to Banchile
SANTIAGO, Chile--(BUSINESS WIRE)--Jan 31, 2019--Parque Arauco S.A. (SSE: PARAUCO) (Bloomberg: PARAUCO:CI) (“Parque Arauco”) announces the purchase of LarrainVial Investment Fund Patio Renta Inmobiliaria’s 47% participation in their joint Arauco Express strip center business, which corresponds to 54,880 shares at a price per share of 18.1175 UF for a total of 994,288 UF (approximately US$ 42 million). The transaction has until March 20, 2019, to be completed.
Additionally, Parque Arauco announces a binding agreement with Banchile Administradora General de Fondos (“Banchile”) for the subsequent sale of 57,629 shares (49% participation) in Arauco Express to an investment fund that Banchile represents, with PASA maintaining 51% of the shares. The price of this transaction is set at 18.661 UF per share, a total of 1,075,415 UF (approximately US$ 45 million) to be paid at the transaction’s closure.
The sale of shares and rights are subject to standard conditions which are typical in these types of transactions and which must be met by March 29, 2019.
Following the transactions with LarrainVial and Banchile, the resulting profit after taxes for Parque Arauco is approximately US$ 1.5 million, which according to IFRS 10 will be recognized directly in equity and not as profit in the income statement.
Parque Arauco began to diversify in asset classes with the incorporation of its first strip center, Arauco Express Pajaritos, in 2008. There are 15 Arauco Express strip centers, comprising 37,000 m 2 of GLA throughout Chile, including the recently opened strip center Arauco Express Coquimbo and expansion of Arauco Express Ossandón.
Currently, Parque Arauco has 1,053,000 m 2 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.
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CONTACT: Tori Creighton
Head of Investor Relations
(56 2) 2299 0608
KEYWORD: UNITED STATES NORTH AMERICA SOUTH AMERICA CHILE NEW YORK
INDUSTRY KEYWORD: DEPARTMENT STORES REIT RETAIL CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE OTHER RETAIL
SOURCE: Parque Arauco S.A.
Copyright Business Wire 2019.
PUB: 01/31/2019 07:46 PM/DISC: 01/31/2019 07:46 PM