SANTIAGO, Chile – Parque Arauco S.A. has announced a strategic agreement to acquire Open Plaza Kennedy from Grupo Falabella, a significant move in the retail landscape of Santiago. This acquisition is contingent on customary transaction conditions. If successfully completed, Parque Arauco will invest approximately US$ 200 million (UF 4,800,000), subject to adjustments.
Open Plaza Kennedy, inaugurated in late 2019, is strategically located on the east side of Rosario Norte Street, adjacent to Parque Arauco Kennedy. The site features a shopping center boasting 54,000 square meters of retail space, complemented by a Courtyard by Marriott hotel totaling 15,500 square meters, resulting in a combined leasable area of 69,500 square meters.
The tenant lineup at Open Plaza Kennedy includes popular brands such as Sodimac, Tottus, Ikea, H&M, and Decathlon, providing a unique mix that enhances the existing offerings at Parque Arauco Kennedy. Over the past year, Open Plaza Kennedy has reported an operational net income (NOI) of approximately US$ 13.3 million (UF 320,000).
Eduardo Pérez Marchant, CEO of Parque Arauco, stated, “This acquisition is pivotal for our growth strategy, potentially expanding our retail space by around 5%. We aim to leverage cost synergies to enhance the asset’s NOI.” Pérez further emphasized the company’s robust financial position, with cash reserves exceeding CLP 420 billion (approximately US$ 460 million), sufficient to successfully fund this transaction. He noted the firm’s solid performance and outlined plans to adjust capital expenditures to align with the acquisition. The anticipated impact on financial ratios includes a shift in the debt to EBITDA ratio from 5.2 times to approximately 6 times, in line with the company’s strategic financial targets. Additionally, Parque Arauco continues to explore opportunities to sell minority stakes in established assets to further bolster its balance sheet.
About Parque Arauco
Parque Arauco operates a total Gross Leasable Area (GLA) of 1,182,000 square meters across Chile, Peru, and Colombia. Since launching its first shopping center in Chile in 1982, the company has expanded into Peru and Colombia, establishing a strong regional presence.
