IRSA Takes Alto Palermo Option

Chile-based mall developer and operator Parque Arauco is selling an option to acquire the 30% it holds in Argentinean peer Alto Palermo to IRSA. The option will cost IRSA, an Argentine commercial real estate developer, $6m and give it the right to acquire the stake, which includes equity and debt, for $126m in cash minus the option cost, through August 31. The option is extendable through November 30. Parque Arauco will use proceeds of the sale to finance expansion in Chile, Peru and Colombia, says executive vice president Andres Olivos in a statement. He adds that the company is interested in acquiring majority stakes in projects there. Parque Arauco is developing 2 malls in Colombia: Parque Alameda and Parque La Colina. In Peru, it owns and operates Megaplaza Norte and Megaplaza Express and plans to develop others there. In Chile the company has 9 shopping malls. IRSA says the deal will make it the leader in Argentine mall developers and owners.