Arauco Shops Peru, Colombia Local Markets

Chilean shopping mall developer Parque Arauco is eyeing local markets debt financing and looking for equity investment to fund projects in new markets. “We plan to issue debt in Peru and Colombia,” Juan Pablo Spoerer, CFO, tells LatinFinance. He adds that Arauco seeks to place a total $271m in the local markets of the two countries. And while public stock issuance is not under consideration, the developer aims to get about $180m in equity investment from private investors for Peruvian and Colombian projects. Spoerer says Arauco will begin placing bonds as individual projects – mostly construction of new malls – begin, with the first coming before the end of the year. It has 11 projects set for 2008-2010 in Chile, Peru, and Colombia, totalling north of $1bn, as it aims to double total gross leasable area to 1.2m square meters. New projects include the $120m San Isidro mall in Peru, and the $80m Pereira and $157m Barranquilla shopping centers in Colombia.