Parque Arauco Reports Stellar 2024 Performance, Eyes Record Investment in the Years Ahead
Parque Arauco, a leading name in Latin American shopping centers, has released its 2024 annual report, showcasing a year of robust growth and ambitious goals. The report, featuring insights from Chairman Salvador Said and CEO Eduardo Pérez, paints a picture of a company firing on all cylinders and poised for further expansion. Discover the key highlights of Parque Arauco’s successful year and their exciting plans for the future.
“We’re committed to ambitious targets, striving to lead in real estate asset development and operation across the region, achieving profitable and sustainable growth,” stated Chairman Salvador Said. He emphasized the company’s strong platform and capabilities, which have propelled them toward their objectives, a performance well-received by the market.
Proof of this success lies in Parque Arauco’s impressive financial performance. The company’s market capitalization soared by 33% between the close of 2023 and the first quarter of 2025, demonstrating strong investor confidence.
Adding to the positive news, Parque Arauco has achieved its lowest level of net financial debt to EBITDA in a decade, sitting at a healthy 4.7x. According to Said, this financial strength “will allow us to move forward with the acquisitions of Open Plaza Kennedy and Minka, maintaining debt levels within our target range.” This strategic financial management is crucial for sustainable growth.
With 58 commercial assets totaling 1.2 million square meters, Parque Arauco continues to expand its footprint. CEO Eduardo Pérez highlighted the significant announcement of acquiring Colvalor’s 47.5% stake in Parque Alegra in Colombia, further solidifying the company’s presence in the region.
Said stressed the importance of responsible financial management alongside profitable growth. “The stability of the real estate business depends on balancing the present and future with a solid balance sheet and a capital structure that reduces costs and offers flexibility,” he noted. This careful approach ensures long-term sustainability.
The company also highlighted its strategic move of selling a minority stake in its outlet portfolio to AFP Habitat pension funds and extending debt duration through US$150 million in bond issuances. These actions underscore Parque Arauco’s commitment to optimizing its financial position.
Looking ahead, Parque Arauco is gearing up for a record-breaking investment phase. “We are preparing the company’s balance sheet for a 2025 that we estimate will be a record year in investment, exceeding US$500 million for the coming years, based on a detailed plan with clearly defined projects,” revealed Said. This massive investment signals strong confidence in the future and a commitment to continued growth.
Pérez emphasized that expanding key assets remains a primary growth strategy, complemented by selective greenfield projects and acquisitions. This balanced approach allows for both organic and inorganic expansion.
A major focus is the ongoing expansion of Parque Arauco Kennedy, with the retail phase slated to open in the fourth quarter of 2025. Pérez confirmed that the expansion is already “more than 50% commercialized,” indicating strong demand and promising returns. The acquisition of the adjacent Open Plaza Kennedy, pending regulatory approval, will further enhance the complex.
“In the future, our focus will be on capturing cost synergies in the short term and revenue synergies in the medium term, which will allow sales of both assets, especially Open Plaza Kennedy, to be higher than current levels,” Pérez explained to shareholders.
Furthermore, Parque Arauco plans to increase investments in multifamily projects, integrating them into their portfolio of shopping centers. This diversification strategy opens new avenues for growth and revenue.
“We see that the sector has shown a trend of consolidation in the last decades and we believe that this will continue in the future,” Said added, suggesting potential future acquisitions and strategic partnerships.
“Looking ahead, we remain focused on generating value for our shareholders through profitable and responsible growth, increased productivity of our assets, and a constant transformation in the way we do things,” Pérez concluded, reaffirming Parque Arauco’s dedication to its stakeholders.
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