A closer look at Parque Arauco, the successful Chilean shopping mall developer expanding into Colombia and Peru.
BY CHRONICLE STAFF
Juan Pablo Spoerer, CFO of Chile-based Parque Arauco, is full of enthusiasm as he gives a rundown of the companys strategy of doubling its gross leasable area through international expansion. And with good reason. The strategy is paying off, even before its fully implemented.
Last year, Parque Arauco – one of Latin America’s leading international shopping mall developers - boosted total revenues by 26 percent to 46.1 billion Chilean pesos (US$91.4 million), while net operating income grew 21 percent to 21.4 billion pesos and EBITDA expanded 21.0 percent to 6.3 billion pesos.
While more than half of revenues currently come from its home market of Chile, international revenues will grow substantially in the future. “This will change dramatically in the future,” Spoerer says. “We plan to increase our presence outside of Chile…Of the $1 billion in announced investments, 50 percent will be [invested] in Chile, roughly 25 percent in Peru and 25 percent in Colombia.”
Spoerer himself is part of the changing Parque Arauco. He joined the firm last October after serving as deputy Chief Financial Officer of Chilean electricity company Chilectra, where he was responsible for finance, business development and strategic planning for operations in Chile, Argentina, Peru, Brazil and Colombia. Spoerer received his MBA degree from the Fuqua School of Business at Duke University in 1998 and graduated from the Catholic University of Chile in 1993.
Parque Araucos strategy has several key pillars: To increase its presence in its home market of Chile, to increase its presence through different formats and segments and to increase its international presence. To help it achieve those goals, the company last year announced a $1 billion investment plan to be implemented through 2009. More than half - 65 percent - is already under execution, Spoerer points out.
In Chile, Parque Arauco has bought two new malls, the Plaza El Roble in the..
Keywords: Alto Palermo (APSA), Bogota, Bucaramanga, Buenos Aires, Cali, Inmuebles Panamericana, Lima, Medellin, MegaPlaza, Pereira