In Colombia, it is common for units in shopping centers to be sold off individually as retail condominium units, so many unit investors may participate in the ownership of a mall, plaza or office building.

In a statement shared with Finance Colombia, Parque Arauco confirmed that Visum Rentas Inmobiliarias currently owns a portfolio of commercial premises and offices in Titan Plaza. Once the conditions agreed in the agreement are met, Parque Arauco will pay Visum $138,720 million Colombian Pesos (approximately $34 million USD) for the acquisition of 51% of the fiduciary rights to the property, and will have a purchase option for the remaining 49% for a period of 30 months, after 24 months from the closing date of the agreement.

The Titan Plaza shopping center in Bogotá’s northwest at the intersection of 80th St. and Boyacá Avenue, near the suburb of Engativá, has about 69,000 square meters of leasable space, which is divided into about 54,500 square meters of commercial area and 14,500 square meters of office space. Completed in 2012, the mall is anchored by major brands such as Falabella (department store), Jumbo (grocer), Zara (fashion) and movie theater CineColombia.

The vehicle in which Parque Arauco will invest owns about 19,000 square meters of commercial space, which in the last twelve months (until June 2023) contributed an EBITDA of $23 billion COP (approximately $5.6 million USD). 80% of the EBITDA of this vehicle, which currently has no debt, comes from the operation of the retail surface and 20% of the EBITDA comes from the operation of the office space. The EBITDA per square meter of this retail area is very similar to that of Parque La Colina in the northern Bogotá suburb of Suba, Parque Arauco’s main asset in Colombia, which accounts for the high quality of the real estate spaces that are part of this transaction.

Diego Bermúdez, General Manager of Parque Arauco Colombia Division, said that “this investment in Titan Plaza, along with allowing us to strengthen our presence in Bogotá, the largest city in the country, is the first we have made in a multitenant shopping center. In Colombia, approximately two-thirds of the surface of shopping centers is in multitenant assets, and exceptionally some of them have an outstanding performance. This investment is in addition to the one recently made in Parque Alegra, our first shopping center in the city of Barranquilla, reinforcing our commitment to the development of Colombia.”

Photos of Titan Plaza courtesy of Parque Arauco

]]> https://www.financecolombia.com/grupo-valorem-to-open-four-seasons-hotel-in-cartagenas-getsemani-neighborhood/ Sat, 15 Jun 2019 23:59:37 +0000 https://www.financecolombia.com/?p=17450 Luxury hotel brand Four Seasons Hotels and Resorts Grupo Valorem subsidiary San Francisco Investments, have announced plans to open a luxury hotel and private residences in Cartagena, Colombia’s dominant Caribbean tourism destination.

Located in Getsemaní, a neighborhood adjacent to Cartagena’s convention center and the historic walled city, a UNESCO World Heritage site, Four Seasons Hotel and Private Residences Cartagena plans to revitalize and restore several culturally significant buildings dating as far back as the 16th century, including the Cloister of Saint Francis (Claustro de San Francisco) that includes the 16th-century Saint Francis Church; the Club Cartagena, a 1920s Beaux Arts venue; and four historic theatres, Teatro Cartagena, Teatro Calamarí, Teatro Bucanero and Teatro Rialto. Four Seasons plans a careful restoration aimed at preserving the iconic facades and historic architecture. Situated in the Getsemaní neighborhood, the Hotel and Private Residences will provide guests and residents with convenient access to Cartagena’s burgeoning culture and entertainment scene, and numerous architectural landmarks. The hotel also will offer easy access to Cartagena’s convention center, which constantly attracts international events.

“We are proud to partner with the iconic Four Seasons brand to build a new luxury Hotel and Private Residences in the vibrant city of Cartagena,” says Carlos Arturo Londoño, President, Valorem. “Paired with Four Seasons exceptional service, the newly restored Hotel and Private Residences will be the most sought-after destination to live and visit and will transform the hospitality landscape in Cartagena.”

“This new Hotel and Private Residences is the perfect project for us to expand our presence in South America, providing us with the rare opportunity to convert such an exceptional collection of historic buildings within a marquee location in one of the region’s most alluring cities,” says Bart Carnahan, Executive Vice President, Global Business Development and Portfolio Management, Four Seasons Hotels and Resorts. “Together with our partners at Valorem, we look forward to bringing the very best in luxury hospitality to Cartagena.”

With interiors designed by François Catroux and Wimberly Interiors, the new Hotel will feature 131 rooms, including a Royal Suite and a Presidential Suite boasting 4,200 square feet (390 square meters) and 3,500 square feet (325 square meters) of living area respectively. The hotel will offer six unique AvroKO-designed food and beverage concepts with both indoor and terrace dining as well as an atrium lounge inside Club Cartagena. The rooftop pool will offer views of Cartagena Bay and the ancient walled city where guests can access the pool bar and grill from private cabanas and day beds. A  Four Seasons spa and fitness center will also be available.

Four Seasons Hotel and Private Residences Cartagena will also include approximately 16 Private Residences, the first branded residential alternative in Cartagena’s historic district. The hotel will also include 16,000 square feet (1,485 square meters) of meeting and event space.

Founded in 1997, Valorem is a Colombian conglomerate owning or controlling Caracol Television, El Espectador newspaper, Cromos magazine, CineColombia movie theater chain, the D1 convenience store chain (Koba S.A.) Refocosta timber, and Ditransa cargo, among other investments.

As of December 2017, Grupo Valorem’s assets and sales were USD $1.2 billion and USD $1.3 billion respectively (based on ownership in subsidiaries).