Parque Arauco to acquire Grupo Falabella and Open Plaza for $200m.

Parque Arauco, a stylish mall with high-end global brands, department stores, restaurants, cafes & a movie theater, agreed to acquire Grupo Falabella, a shopping mall, and Open Plaza, a mall, for $200m. “This agreement is important for Parque Arauco because, if completed, it will increase our retail space by approximately 5%, and at that time, we will actively work to capture cost synergies to strengthen the asset's NOI. Our cash position exceeds CLP420bn (approximately $460m), which is more than sufficient to fund this transaction. On the other hand, we have had very solid results recently. In this context, if the deal goes through, we will reschedule some CAPEX investments to accommodate this acquisition. Thus, considering Open Plaza Kennedy's twelve-month NOI, we expect to move from the current financial debt to EBITDA ratio of 5.2 times to a ratio of approximately 6 times, aligned with our target range of 5 to 6 times. Additionally, we will continue pursuing potential sales of minority stakes in mature assets, similar to those we have already executed in Chile and Colombia, to further strengthen our balance sheet,” Eduardo Pérez Marchant, Parque Arauco CEO.