Parque Arauco announces $277M in new investments

Parque Arauco announces $277M in new investments

Parque Arauco Announces $277M in New Investments to Fuel Expansion Across Latin America

Parque Arauco S.A., a leading real estate developer in Latin America, has announced a series of strategic investments totaling approximately $277 million in 2024, reflecting its commitment to expanding its retail and mixed-use portfolio across Chile, Peru, and Colombia.

Key components of the investment include the acquisition of Open Plaza Kennedy in Santiago, Chile, for $173 million, and the Minka Shopping Center in Peru for $100 million according to reports. These acquisitions add 124,000 square meters of gross leasable area (GLA) to the company's development pipeline. Additionally, Parque Arauco is investing $170 million to expand its flagship Parque Arauco Kennedy complex in Chile, which will include a new office tower and expanded retail space, with completion expected by 2026. A residential component featuring 414 rental units at the same site will add $60 million to the investment as detailed.

The company's broader investment portfolio for 2024–2025 totals $774 million, with $500 million remaining to be deployed. This includes projects such as Parque La Molina in Peru, a new lifestyle center with 16,000 square meters of GLA, and the expansion of Mega Plaza Independencia, which will feature a gastronomic district according to plans. These initiatives aim to increase leasable area by over 20%, adding 240,000 square meters across its portfolio as reported.

Financially, Parque Arauco reported strong performance in early 2025, with first-quarter sales reaching CLP 82.78 billion (up 13.6% year-over-year) and EBITDA growth of 21% in 2024, exceeding historical averages. The company's net financial debt to EBITDA ratio stood at 4.7x as of year-end 2024, its lowest level in a decade, supporting its aggressive capital allocation plans.

While the company faces risks such as market saturation and e-commerce disruption, its diversified portfolio and focus on mixed-use developments—such as integrating residential, retail, and office spaces— position it to mitigate sector-specific volatility. With a 33% increase in market capitalization from late 2023 to early 2025 according to analysis, Parque Arauco's strategic investments underscore its long-term vision for regional growth.