SANTIAGO, Chile–(BUSINESS WIRE)–Parque Arauco S.A. (PARAUCO.SN) announces a partnership with Hasta Capital to develop its second multi-family residential property in Colombia.
Today, Parque Arauco signed a purchase promise agreement of a plot of land in Medellin where it will develop its second multi-family project in Colombia. This residential tower for rent will be located in the neighborhood of Ciudad del Rio, a middle to high income residential zone close to the Medellin Modern Art Museum. The project will consist of more than 300 residential units and will require an investment of approximately USD $23 Million.
To develop this project, Parque Arauco is partnering with Hasta Capital, a company that has extensive experience in the development and management of multi-family projects in the US and Latin American markets. Parque Arauco will own 95% of the asset, while Hasta Capital will own the remaining 5%. In the future, subject to specific conditions that must be met within a certain time frame after the opening, Parque Arauco could acquire the 5% owned by Hasta Capital, and Hasta Capital could sell their ownership to Parque Arauco.
This project complements the announcement that was released during the first quarter of this year, about Parque Arauco´s development of a multi-family residential building for rent in Bogota, Colombia, which consists of 132 units and requires an estimated investment of USD $11 Million.
Eduardo Pérez Marchant, CEO of Parque Arauco, mentioned “This investment strengthens our decision to invest in multi-family properties, a real estate use that we believe will rapidly grow in our region over the next years and will contribute to the future profitable growth of Parque Arauco. The expertise we are developing with multi-family properties also contributes to the development of profitable shopping centers since it allows us to increase the density and profitability of existing and future assets. We will continue our tradition of rigorously assigning capital to profitable projects that add value to the shareholders of Parque Arauco.”
Currently, Parque Arauco has 1,122,500 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 18 regional shopping centers, 10 neighborhood centers, 7 premium outlet malls, 21 strip centers and 9 assets of other property uses such as offices, medical centers, and hotels across Chile, Perú and Colombia. For more details, visit the company’s website: www.parauco.com.
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