Parque Arauco SA and two subsidiaries, or the Pasa Group, signed a binding memorandum of understanding for a merger with the Wiese Family to create Newco I.
The new entity will combine Pasa Group's retail portfolio in Peru covering 165,500 square meters of gross leasable area, and a 50/50 239,500-square-meter portfolio between Pasa Group and the Wiese Family.
The assets in the portfolio include Larcomar, Parque Lambramani, InOutlet Faucett and Lurin, Viamix Colonial, Chorrillos and Malvinas, El Quinde Ica, El Quinde Cajamarca, Jesus María, MegaPlaza Norte, Chimbote, Cañete, Pisco, Jaén, Huaral, Express Villa El Salvador I and Villa El Salvador II, Villa Chorrillos, Chincha and Barranca.
Newco I will be held 70/30 by Pasa Group and the Wiese Family. The agreement to set up the Peruvian joint venture also comes with a call and put option for the Wiese Family's participation, which can be exercised after 12 months from the signing of the agreement for roughly 583.5 million sol.
In addition, Pasa Group and the Wiese Family agreed to jointly and equally develop certain land plots in Huaraz and San Juan de Lurigancho, while the remaining MegaPlaza land will be put up for sale.
The shopping center-focused developer, Parque Arauco, has 1,018,000 square meters of total gross leasable area in Chile, Peru and Colombia.
As of June 3, US$1 was equivalent to 3.27 sol.
