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/parque-arauco-issues-200-million-usd-bond/ Thu, 13 Sep 2018 22:23:17 +0000 https://www.financecolombia.com/?p=15813 Regional retail giant Parque Arauco S.A. has issued a bond of about $200 million USD that it plans to use for refinancing debt and upcoming investments, according to the Chilean company.

The Santiago-based firm, which operates four large malls and shopping centers in Colombia, issued the bond in two parts, one at 4 million CLF for 10 years at 2.34% and the remaining 1 million CLF amortizable to 7 years at a rate of 1.69%.

Photo: Parque La Colina mall in Bogotá, Colombia. (Photo credit: EEIM)

Colombia became the company’s second foreign market in 2008 following its entrance to Peru three years earlier.

It opened Parque Arboleda mall in the central coffee region city of Pereira in 2010 and launched the flagship, 62,500-square-meter Parque La Colina mall in Bogotá in 2016.

It also maintains two other retail locations in the Andean nation — Parque Caracolí in Bucaramanga and Premium Outlet Arauco in Sopo just north of the capital — as well as two office buildings and a Sonesta brand hotel in Bucaramanga.

Parque Arauco’s Colombian operations accounted for 14.2% of its revenues in the second quarter of 2018, according to the firm.

Across the three South American nations where it operates, the company has 16 malls, seven outlets, and 17 other retail centers.

The popular shopping center opened last year and is owned by the Chilean firm Parque Arauco S.A., which took sustainability into account during the planning and construction phase of the project. The company says that it spent nearly one-third of the building budget on materials containing recycled content and that it prioritized locally sourced construction materials, with 83% being “invested with local suppliers with inputs from within 800 kilometers of the project.”

To save energy, the building has incorporated LED lighting, high-efficiency motors, and “bioclimatic ventilation.” To reduce water usage, the builders installed efficient toilets and faucets. The green park areas outside also include rainwater collection systems to water native plants that are accustomed to the area’s precipitation levels.

LEED certification, which stands for Leadership in Energy and Environmental Design, is the most widely recognized global standard for green buildings. There are four levels of certification based upon the overall rating assigned by technical experts during their inspection based upon everything from energy use and air quality to water management and other aspects with environmental effects. Gold is the second-highest standard on the scale. It ranks behind only the “platinum” standard and ahead of both “certified” (the lowest level) and “silver.”

“The process is designed to inspire project teams to seek innovative solutions that support public health and our environment, while saving building owners money over a project’s life cycle,” according to the certifying authorities.

Parque La Colina is the first mall owned by Parque Arauco to receive gold certification. The company’s Arauco Quilicura mall in Chile and InOutlet Prmeium Lurín mall in Peru have both received silver certification.

In all, Parque La Colina is home to at least 199 stores, including locations of H&M, Falabella, Crate & Barrel, and Zara. Cinemark, one of the largest cinema chains in Colombia, also has a theater within the 15,000-square-meter shopping center.

Nautica, which opened its first store in Colombia in 2009, will be entering one of the capital’s largest shopping centers. Calvin Klein, American Eagle, Tommy Hilfiger, Lacoste, and Hugo Boss are among the other similar stores already present in Parque La Colina. The new Nautica store will be located on the first floor, reported Modaes.

Nautica’s other stores within Colombia are located in the Gran Estación and Titan Plaza shopping centers in Bogotá, the high-end Santa Fe mall in Medellín, and Jardín Plaza in Cali.

The globally recognized brand, which is owned by the U.S.-based VF Corporation and will celebrate its 35th anniversary next year, has a presence in at least 75 countries across the world. VF Corporation also controls well-known brands including The North Face, Vans, Timberland, Lee jeans, Jansport, and Eastpak.

Photo credit: PRNewsFoto/Nautica

This launch will come just weeks after the company opens the doors to its first location in Bogotá on May 6, the date when the brand officially plants its flag on the Colombian market. This large, 18,000-square-meter store is nearing completion and will occupy two floors in the capital’s Parque La Colina shopping center (Centro Comercial Parque La Colina).

Photo: As with its store in Santiago, Chile, the Swedish retailer is hoping to further expand its Latin American presence by opening at least three stores in Colombia this year (Credit: Costanera Center, Santiago)

To drum up interest in this grand opening, H&M Colombia will give away gift certificates of roughly $200 USD to the first two people who show up in line. The next 300 will receive $50 USD gift certificates, and the following 1,000 shoppers will get $20 USD off their purchase.

“We are happy to expand H&M in Colombia with our next store that will open in Bogotá,” said Daniel Kulle of H&M North America earlier this year. He believes that the rising number of middle-class consumers in the nation will lead to high demand for the company’s “fashion and quality at very competitive prices.” Kulle added that, “we hope to bring something new and exciting for the Colombian market.”

Further expanding on H&M’s rollout in the Andean nation, a third location is already in the works. According to reports, it will be located in the La Felicidad mall (Centro Comercial Multiplaza La Felicidad) in Bogotá.

H&M’s expansion into Colombia is a part of its global push to increase its physical presence throughout the world. In 2016, the retailer launched its first stores in locations including Cyprus and New Zealand, and it has named Vietnam, Iceland, Georgia, and Kazakhstan, along with Colombia, as its top new markets for 2017. H&M also counts Mexico, Chile, and Peru among its newer focus areas within Latin America.

With this transaction, Parque Arauco S.A. acquires an additional 24.75% of Parque Arboleda, a regional shopping center in the city of Pereira, an additional 45% of Parque Caracolí, a regional shopping center in the city of Bucaramanga (pictured above), an additional 45% of Parque La Colina, a regional shopping center in the city of Bogotá which is expected to inaugurate during the first half of 2017, and an additional 45% of a 46,000 m² land plot in the city of Valledupar. This acquisition allows Parque Arauco S.A. to control 55% of Parque Arboleda, 100% of Parque Caracolí, 100% of Parque La Colina, and 100% of Valledupar land plot, and further consolidate its interest in Colombia.

Parque Arauco has 814,000 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 six regional shopping centers, three premium outlet malls and eleven strip centers in Chile; six regional shopping centers, six neighborhood centers, one premium outlet mall and one strip center in Peru; and two regional shopping centers in Colombia as well as a large land bank to support the company’s future growth plans