PARQUE ARAUCO AGREES TO ACQUIRE CONTROLLING INTEREST IN PARQUE FABRICATO

September 05, 2023

Posse Herrera Ruiz advised Parque Arauco S.A. in the preparation, negotiation and signing of the agreements pursuant to which Parque Arauco S.A., through its subsidiary Parque Arauco Colombia S.A.S., reached an agreement to acquire 51% of the trust rights held by Fondo de Inversión Colectiva Inmobiliario INMOVAL (“INMOVAL”), in Parque Fabricato.  With this transaction, Parque Arauco moves from a management role to a controlling interest in the asset located in the Municipality of Bello, in the metropolitan area of the city of Medellín, Colombia.

INMOVAL, managed by Credicorp Capital Colombia S.A., currently owns approximately 56% of the trust rights of Patrimonio Autónomo Locales (“PAL”), a debt-free investment vehicle that holds approximately 70% of the horizontal property of Parque Fabricato, which owns 39,700 m2 of the shopping center’s ABL.

Upon completion of the conditions precedent, Parque Arauco will pay INMOVAL an advance payment of COP 68,000 million (approximately USD 17 million). Subsequently, in 2026, Parque Arauco will pay INMOVAL a price adjustment based on that year’s EBITDA according to the procedure agreed by the parties. With this transaction, Parque Arauco will consolidate the EBITDA generated by PAL, which amounts to COP 22.5 billion per year (approximately USD 5.5 million).

Eduardo Pérez Marchant, CEO of Parque Arauco S.A., commented that “completing this purchase option on Parque Fabricato allows us to materialize our first investment in one of Colombia’s most important urban areas, Medellín, with an asset that we know well. With this investment, we are taking a new step on our path of incorporating iconic, high-quality shopping centers with prime locations and good prospects for future growth into our portfolio. We also reinforce our commitment to the development of Colombia by adding this investment to those recently announced, such as the development of Parque Alegra in the city of Barranquilla and the acquisition of a stake in Titán Plaza in the city of Bogotá.”

COUNSEL TO PARQUE ARAUCO

Posse Herrera Ruiz

Posse Herrera Ruiz

COUNSEL TO CREDICORP (FONDO DE INVERSION COLECTIVA INMOBILIARIO INMOVAL)

Brick Abogados