Parque Arauco Signs a Memorandum of Understanding to Purchase Ekimed S.A.C.

Parque Arauco S.A. (SSE: PARAUCO) (Bloomberg: PARAUCO:CI) has signed an agreement to purchase 100% of the shares of Ekimed S.A.C. (Ekimed), owners of 99.9% of the El Quinde shopping centers in Cajamarca and Ica, two of the top ten cities in Peru. Cajamarca is the capital and largest city in the Cajamarca Region in Northern Peru with a population of approximately 370,000 people. El Quinde Cajamarca, which opened in 2006, is the preferred and largest mall in the city. It has 30,000 m2 of GLA and its anchor tenants are Falabella, Paris, and Metro. It also boasts various small stores, services and entertainment options.

Ica is the capital and most important city in the Ica region in south central Peru with a population of approximately 350,000 people. El Quinde Ica was opened in 2012, has 37,000 m2 of GLA of various small stores, entertainment and service options and five anchor stores – Falabella, Paris, Ripley, Metro and Maestro. It is the largest mall in the city.

The initial acquisition price of the purchase of Ekimed is estimated at US$100 million. This includes the two shopping malls and 143,000 m2 of land located in major cities throughout Peru. This will bring Parque Arauco´s total land bank in Peru to more than 400,000 m2 with total land bank in all three countries reaching more than 830,000 m2.

The deal, which still has to go through the due diligence process, will make Parque Arauco the most diverse shopping center operator in Peru, both in terms of formats and geographic reach. Not including El Quinde Cajamarca and El Quinde Ica, Parque Arauco currently has 247,118 m2 of GLA in Peru in its four regional shopping centers, five neighborhood centers, and one outlet mall. The company also has six regional shopping centers, two outlet malls and nine strip centers in Chile, and two regional shopping centers in Colombia giving it a total GLA of 715,154 m2.