INVESTOR PRESENTATION SEPTEMBER 2015

Transcription

1 INVESTOR PRESENTATION SEPTEMBER 2015

2 DISCLAIMER THIS DOCUMENT HAS BEEN PREPARED BY PARQUE ARAUCO FOR THE PURPOSE OF PROVIDING GENERAL INFORMATION ABOUT THE COMPANY. The Company assumes no responsibility for, or makes any representation or warranty, express or implied, with respect to, the accuracy, adequacy or completeness of the information contained herein. The Company expressly disclaims any liability based on such information, errors therein or omissions therefrom. This presentation includes certain statements, estimates and forecasts provided by the Company with respect to it s anticipated future performance and involves significant elements or subjective judgment and analysis that may or may not prove to be accurate or correct. There can be no assurance that these statements, estimates and forecasts will be attained and actual outcomes and results may differ materially from what is estimated or forecast herein. The information contained herein has been prepared to assist interested parties in making their own evaluation of the company and does not purport to be all inclusive or to contain all the information that a potential counterparty may desire. In all cases, interested parties should conduct their own independent investigation and analysis of the Company. Interested parties can only rely on the result of their own investigation and the representations and warranties made in any definitive agreement that may be executed.

3 INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

4 INTRODUCTION PARQUE ARAUCO AT A GLANCE KEY FIGURES OPERATIONAL METRICS BY COUNTRY Parque Arauco is one of the main shopping center developers and operators in Chile,, and Colombia. Indicator / Country CHILE PERU COLOMBIA Total GLA (m 2 ) 1 408, ,500 71,500 Owned GLA 373, ,515 31,174 Occupancy 95.3% 94.1% 89.7% Revenues LTM (US$MM) # of Operations TOTAL M 2 TOTAL GLA % PERU 8.8% COLOMBIA 50.0% CHILE 816,000 TOTAL REVENUES % PERU 63.6% CHILE 7.6% COLOMBIA TOTAL US$MM 219 (1) Marina Arauco not included (2) Revenues from Juky 2014 June Exchange Rate: US$ 1 =CLP 621.4; (1) Marina Arauco not included (2) Revenues from July 2014 June Exchange Rate: US$ 1 =CLP 621.4; SHAREHOLDER STRUCTURE (JUNE 2015) OPERATIONAL METRICS BY FORMAT 1.8% Mutual Funds TOTAL GLA 1 TOTAL REVENUES % Investment Funds 6.0% Others 83.6% REGIONAL 90.4% REGIONAL 18.4% Brokers 9.9% Pension Funds 26.0% Controlling Group 6.1% Said Yarur Family 2.6% Abumohor Family MARKET CAP US$MM 1, % OTHERS TOTAL M 2 7.7% NEIGHBORHOOD 816, % OTHERS TOTAL US$MM (1) Marina Arauco not included (2) Revenues from July 2014 June Exchange Rate: US$ 1 =CLP 621.4; Others includes strip centers and outlet malls. 3.6% NEIGHBORHOOD 219

5 INTRODUCTION SUCCESSFUL GROWTH STORY 358, , ,200 GLA M 2 2.0x 559, , , CAGR 15.1% 1982 Parque Arauco Kennedy opens as first shopping center in Chile 1995 Parque Arauco S.A. IPO 2006 Parque Arauco expands into with the purchase of a 45% stake in MegaPlaza Norte in Lima 2009 Opening of Parque Arauco s first neighborhood center, MegaPlaza Express Villa Chorrillos in 2010 Parque Arauco opens first mall in Colombia, Parque Arboleda in Pereira 2011 Capital increase for US$145 mm 2012 Acquisition of Arauco Premium Outlet Buenaventura, Parque Arauco s first outlet mall in Chile 2012 Formation of Arauco Express, subsidiary charged with developing strip centers in Chile and SCP, subsidiary charged with developing strip centers and outlet malls in 2013 Acquisition of InOutlet Faucett, Parque Arauco s first outlet mall in 2014 Capital increase for US$182 mm REVENUES US$MM EBITDA US$MM 2.0x 1.9x Source: Parque Arauco. Exchange Rate: US$ 1 = CLP in Chilean GAAP, in IFRS. Marina Arauco not included. 5

6 INTRODUCTION REVENUE TYPE AND CONTRACT DURATION FIXED VS VARIABLE RENTAL REVENUES 1 CONTRACT LENGTH (BASED ON % OF GLA) 1 MOST OF OUR REVENUES ARE PROTECTED 15% Variable Revenues AGAINST INFLATION 60% 5% 85% Fixed Revenues 30% 5% 2 years 23 years 34 years 4 years Total OUR RENTAL REVENUES ARE DERIVED PRIMARILY FROM FIXED CONTRACTS AND 60% OF OUR CONTRACTS HAVE A DURATION OF MORE THAN 4 YEARS 1. As of June

7 INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

8 O UR O PE RAT IO NS PARQUE ARAUCO HAS A HIGH QUALITY PORTFOLIO PARQUE ARAUCO KENNEDY CHILE ARAUCO MAIPÚ CHILE LARCOMAR PERU LO CA TED IN THE H EA RT OF ON E OF T HE M A IN LO C A TE D I N TH E H I G H E ST G R OW I N G MI DD L E ONLY MALL IN LIMA WITH OCEANVIEWS, CLOSE TO H OT EL AND OFFIC E D I ST R IC TS IN SA N T IA G O C L A SS N E I G H B O R H O O D I N S A N TI A G O ONE OF THE MAIN HOTEL AND OFFICE DISTRICTS MEGAPLAZA NORTE PERU ARAUCO ESTACIÓN CHILE PREFERRED SHOP P I N G C EN T ER I N T HE C IT Y LO C A TE D I N N O RTH E R N L I M A TH I S I S TH E MOST LO CAT ED I NSI D E SANT I AGO S M AI N T RAI N AND O F P ER I ER A V I S I TE D MA L L I N P E R U B US ST AT I O N PARQUE ARBOLEDA COLOMBIA 8

9 OUR OPERATIONS PARQUE ARAUCO HAS 6 REGIONAL SHOPPING CENTERS, 3 OUTLET MALLS AND 11 STRIP CENTERS IN CHILE AND THE AVERAGE AGE OF THE PORTFOLIO IS 16 YEARS Quilicura Buenaventura Outlet GLA (m 2 ) % Ownership Owned GLA (m 2 ) Occupancy Year of Incorporation Kennedy Parque Arauco Kennedy 115, , % 1982 Maipú Estación Central Curauma Santiago San Antonio Arauco Maipú Arauco Chillán Arauco Estación 75,000 31,500 68,500 83% 75,000 31,500 56, % 92.6% 97.8% Chillán Concepción Arauco San Antonio 28,500 51% 14, % 2009 Arauco Express (Stripcenters Chile) 1 18,500 51% 9, % 2012 Arauco Premium Outlets 1 39,000 39, % 2012 Arauco Quilicura 32,000 32, % 2013 TOTAL CHILE 408,000 92% 373, % 1. Arauco Express includes nine strip centers in Santiago, one in Viña del Mar and one in Calama. Arauco Premium Outlets includes three premium outlets located in Santiago, Concepción and Curauma. 9

10 OUR OPERATIONS IN PERU, THE COMPANY HAS 6 REGIONAL AND 6 NEIGHBORHOOD SHOPPING CENTERS, 1 OUTLET MALL AND 2 STRIP CENTER; THE AVERAGE AGE OF THE PORTFOLIO IS 5 YEARS S GLA (m 2 ) %Ownership 1 Owned GLA (m 2 ) Occupancy Year of Incorporation MegaPlaza Norte 110,500 50% 55, % 2006 MegaPlaza Express Villa 7,000 50% 3, % 2009 Larcomar 26,000 26, % 2010 Cajamarca Parque Lambramani 28,500 30, % 2010 Chimbote MegaPlaza Chimbote 28,000 34% 9, % 2012 Barranca MegaPlaza Express Villa El Salvador 9,000 50% 4, % 2012 MegaPlaza Express Chincha 7,000 50% 3, % 2013 MegaPlaza Norte InOutlet Faucett Larcomar Cañete Chincha Pisco Ica Arequipa SCP Properties 2 MegaPlaza Cañete MegaPlaza Express Barranca MegaPlaza Pisco 13,500 16,500 9,500 14,000 51% 50% 50% 50% 6,885 8,250 4,750 7, % 98.9% 98.0% 95.8% Villa Chorrillo and Viamix Chorrillos Villa El Salvador El Quinde Cajamarca El Quinde Ica 30,500 36,500 30,500 36, % 90.8% TOTAL PERU 336,500 67% 224, % 1. Main Parnters in include Grupo Wiese, in all MegaPlaza formats (50%), Los Portales in Víamix and InOutlet Formats (49%) and Inversiones Centenario in Parque El Golf Project. (50%). 2. SCP Properties includes one premium outlet mall in Lima and two strip centers in Lima. 10

11 OUR OPERATIONS PARQUE ARAUCO HAS TWO REGIONAL SHOPPING MALLS IN COLOMBIA AND THE AVERAGE AGE OF THE PORTFOLIO IS 3 YEARS GLA (m 2 ) % Ownership 1 Owned GLA (m 2 ) Occupancy Year of Incorporation Parque Arboleda 33, % 9, % 2010 Parque Caracolí 38,500 55% 21, % 2013 Bucaramanga TOTAL COLOMBIA 71,500 44% 31, % Pereira 1. Main Partner in Colombia is Grupo Bancolombia (45%) 11

12 INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

13 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS Important growth opportunities Strong results in a challenging macroeconomic environment 5. Conservative debt structure and oustanding financial performance Country, format and socioeconomic diversification 2. Solid management team and policies Strong commercial relationships

14 INVESTMENT HIGHLIGHTS THE ANDEAN REGION HAS BEEN GROWING AT A SLOWER, YET STABLE PACE PERU AND COLOMBIA ARE EXPECTED TO GROW AT RELATIVELY HIGH RATES COMPARED TO THE REST OF LATIN AMERICA Brazil Canada RELATIVELY STRONG REAL GDP GROWTH PROJECTIONS e (%) 2016e (%) U.S.A. Canada WITH A STILL RELATIVELY LOW GDP PER CAPITA 2015E (US$) 56,421 45,029 GDP per capita 2015e U.S.A Chile 13,910 Mexico Mexico 10,174 Chile Brazil 9,312 Colombia Colombia 6, ,962 Source: Bloomberg Concensus as of June 2015 Source: IMF as of April Nominal gross domestic product per capita, current prices. 14

15 INVESTMENT HIGHLIGHTS IN SPITE OF A WEAKER MACROECONOMIC ENVIRONMENT, RESULTS HAVE BEEN POSITIVE IN ALL THREE COUNTRIES, ESPECIALLY IN PERU SECOND QUARTER RESULTS TENANT SALES (1) REVENUES (1) EBITDA (1) (2) +11.3% +10.4% +11.0% CHILE 204, ,727 19,510 21,537 17,169 19,050 2Q14 2Q15 2Q14 2Q15 2Q14 2Q % +47.7% +44.9% PERU 494, ,240 38,886 57,454 27,240 39,462 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 COLOMBIA 70,402 2Q % 77,669 2Q15 8,588 2Q % 9,636 2Q % 6,281 6,680 2Q14 2Q15 (1) Chile in MMCLP, in MSoles, Colombia in MMCOP (2) Not including overhead expenses (Corporate Headquarters, Regional Services Center, Chile Division, Division, Colombia Division) Source: Parque Arauco 15

16 INVESTMENT HIGHLIGHTS PARQUE ARAUCO DIVERSIFIES ITS MARKET RISKS AT A COUNTRY, FORMAT, AND SOCIOECONOMIC LEVEL COUNTRY LEVEL DIVERSIFICATION (% OF TOTAL GLA) FORMAT LEVEL DIVERSIFICATION (% OF TOTAL GLA) COLOMBIA Others 8.8% Neighborhood 7.7% 8.7% 41.2% PERU CHILE 50.0% CHILE 83.6% CHILE Regional SOCIOECONOMIC LEVEL DIVERSIFICATION 1 (% OF TOTAL GLA) Medium to High Income: Includes ABC1 and C2 in Chile, A and B in and 6, 5 and 4 in Colombia Medium Income: Includes C3 and D in Chile, C and D in and 3 in Colombia Medium to Low Income: Includes E in Chile and and 2 and 1 in Colombia Source: Parque Arauco 1. Based on socioeconomic composition of community in which malls are located. 16

17 INVESTMENT HIGHLIGHTS WITH A 45% MARKET SHARE IN CHILE, PARQUE ARAUCO IS THE MARKET LEADER IN THE OUTLET FORMAT IN THE ANDEAN REGION OUTLETS CURRENTLY IN OUR PORTFOLIO OUTLETS UNDER CONSTRUCTION OUTLET LURIN, PERU ARAUCO PREMIUM OUTLET BUENAVENTURA, CHILE ARAUCO PREMIUM OUTLET CONCEPCIÓN, CHILE OUTLET COQUIMBO, CHILE ARAUCO PREMIUM OUTLET CURAUMA, CHILE INOUTLET FAUCETT, PERU OUTLET BOGOTA, COLOMBIA Source: Parque Arauco 17

18 INVESTMENT HIGHLIGHTS PARQUE ARAUCO HAS A HISTORY OF STRONG COMMERCIAL RELATIONSHIPS CHILE PERU COLOMBIA Tiffany is always searching for opportunities to create memorable moments for our clients. Parque Arauco, with an open air area, beautiful views of the Chilean mountains and a dedication to customer service, is one of the best places in Latin America to create those experiences. Luciano Rodembusch, VP Latin America, Tiffany & Co. 18

19 INVESTMENT HIGHLIGHTS PARQUE ARAUCO IS SUPPORTING THE GLOBALIZATION OF SEVERAL BRANDS ENTERING THE ANDEAN REGION NEW TENANTS IN PARQUE ARAUCO KENNEDY IN THE LAST 5 YEARS: International Local Name FOREVER 21 TOP SHOP LOUIS VUITTON GUCCI GLA 1, Name ETIQUETA NEGRA MICHAEL KORS RALPH LAUREN RAPSODIA GLA % of new GLA leased in Parque Arauco Kennedy over the last 5 years has been leased to international brands. BANANA REPUBLIC 363 TORY BURCH 201 AEROPOSTALE 342 GUESS 199 DOITE 330 ERMENEGILDO ZEGNA 197 Many brands have opened their DOLCE & GABBANA 316 MINI 190 first store in Chile in Parque Arauco BURBERRY EMPORIO ARMANI DESIGUAL SOFA GALLERY THE POPULAR DESIGN TIFFANY & CO. SALVATORE FERRAGAMO CAROLINA HERRERA WAREHOUSE BCBG LA MARTINA PURIFICACION GARCIA ROXY VICTORIAS SECRET Kennedy during the last five years including Tiffany & Co., Dolce & Gabbana, Forever 21, Jimmy Choo, Tory Burch, Aeropostale, Gap, Omega, Versace Collection, Vince Camuto, Free People and Cafe Paul. OTHERS 6,268 TOTAL 14,868 Source: Parque Arauco 19

20 INVESTMENT HIGHLIGHTS PARQUE ARAUCO HAS AN EXPERIENCED MANAGEMENT TEAM AS WELL AS SOLID CORPORATE GOVERNANCE AND CSR POLICIES PARQUE ARAUCO S ADMINISTRATION RECENT MANAGEMENT AWARDS EXECUTIVE VICE PRESIDENT Juan Antonio Álvarez ADM. & FINANCE MANAGER GENERAL COUNSEL HUMAN RESOURCES MANAGER AUDIT AND CONTROL MANAGER Claudio Chamorro Duncan Grob Carolina Galletti Marco Henríquez CEO CHILE Andrés Torrealba CEO PERU Eduardo Herrera CEO COLOMBIA Juan P. Romero Best Managed Andean Corporate 2014 One of only 44 companies in Chile s Branding Hall of Fame RESPONSIBLE CORPORATE GOVERNANCE CORPORATE SOCIAL RESPONSIBILITY One of the top 5 companies in Chile in 2014 in terms of investor relations One of the 40 most transparent companies in Chile in 2014 according to a report published by Chile Transparente, UDD, KPMG, and Inteligencia de Negocios Arauco Quilicura became the first mall in Chile with LEED certification In 2015, Parque Arboleda, Parque Caracolí and MegaPlaza Norte were all awarded medals at the ICSC Latin American Shopping Center Awards for campaigns which benefited their communities. Source: Parque Arauco 20

21 INVESTMENT HIGHLIGHTS PARQUE ARAUCO S POLICY IS TO FINANCE PROJECTS WITH 50% DEBT AND 50% EQUITY, AND IS COMFORTABLY WITHIN ALL ITS COVENANTS LIABILITIES/EQUITY NET FINANCIAL DEBT/EQUITY 1.05 x 1.09 x 0.87 x Covenant 0.78 x 0.89 x 0.81 x 0.97 x 1.40 x 0.73 x 0.64 x 0.41 x Covenant 0.43 x 0.59 x 0.47 x 0.60 x 1.50 x H H15 EBITDA/FINANCIAL EXPENSES NET FINANCIAL DEBT/EBITDA Covenant 4.39 x 3.56 x 3,84 x 3.42 x 3,89 x 3.31 x 3.16 x 5.52 x 4.78 x 3.34 x 3.85 x 5.00 x 4.25 x 5.32 x 2.50 x H H15 Source: Parque Arauco 21

22 INVESTMENT HIGHLIGHTS DURING THE LAST TWELVE MONTHS, THE COMPANY HAS LIFTED MORTAGES IN CHILE, IMPROVED ITS DEBT RATING, AND CONSIDERABLY INCREASED THE DURATION OF ITS LIABILITIES LIFTING OF MORTAGES IN CHILE (1) 2014: 2015: IMPROVEMENT IN LOCAL DEBT RATING MORTGAGES OVER PARQUE ARAUCO KENNEDY: MORTGAGES OVER PARQUE ARAUCO KENNEDY: 1st degree: Bond holders 2nd degree: Banco Santander 3rd degree: Banco Estado 4rd degree: Banco Estado 5th degree: Banco de Chile No mortgages BBB BBB+ A A A+ Fitch: AA Feller: AA ICR: AA BBB AA AA AA+ (1) All mortgages have been lifted except that of Centros Comerciales Vecionales Arauco Express S.A. (Stripcenters Chile) LIABILITY STRUCTURE LIABILITY AMORTIZATION PROFILE AND DURATION June % Leasing 29% Bonds 3% Hedging Liabilities 65% Loans June % Bonds 4% Hedging Liabilities 44% Loans 5% Leasing JUNE 2014 AMORTIZATION PROFILE AND DURATION months 46 months 712 months 1324 months 2536 months 3748 months 4960 months 610 years 1120 years 2130 years JUNE 2015 AMORTIZATION PROFILE AND DURATION YEARS YEARS Source: Parque Arauco 03 months 46 months 712 months 1324 months 2536 months 3748 months 4960 months 610 years 1120 years 2130 years 22

23 INVESTMENT HIGHLIGHTS PARQUE ARAUCO PARTICIPATES IN MARKETS WITH A RELATIVELY LOW PENETRATION IN THE SHOPPING CENTER SECTOR VS. DEVELOPED COUNTRIES U.S.A. Canada 1,440 2,191 GLA per 1,000 inhabitants Canada U.S.A. 54% 64% % of retail sales in shopping centers Chile Chile 25% Mexico % Colombia 88 Mexico 24% 69 Brazil 20% Brazil 64 Colombia 12% Source: International Council of Shopping Centers (Mar for USA; Jan for Canada, Dec for Chile, and Colombia, Aug for Mexico, Jun for Brazil). Source: International Council of Shopping Centers (Mar for USA; Jan for Canada, Aug for Mexico, Jun for Brazil, Nov for Chile, and Colombia). 23

24 INVESTMENT HIGHLIGHTS PARQUE ARAUCO HAS A LEADING POSITION IN CHILE AND PERU, AND IS GROWING ITS PARTICIPATION IN THE FRAGMENTED COLOMBIAN MARKET TOTAL GLA (THOUSANDS) TOTAL GLA PARQUE ARAUCO (THOUSANDS) MARKET SHARE RANKING CHILE 3,500 M M 2 12% #3 PERU 2,100 M M 2 16% #2 COLOMBIA 4,200 M M 2 2% #3 Source: ICSC and Parque Arauco. Colombia statistics include malls owned by tenants. 24

25 INVESTMENT HIGHLIGHTS PARQUE ARAUCO S GROWTH HAS COME FROM GREENFIELD PROJECTS AND M&A Chile Colombia TOTAL GLA 2006 and before NEW GLA 2007 NEW GLA 2008 NEW GLA 2009 NEW GLA 2010 NEW GLA 2011 NEW GLA 2012 NEW GLA 2013 NEW GLA 2014 NEW GLA 1H15 TOTAL GLA 1Q15 CHILE GREENFIELDS 132,198 28,998 10,705 15,602 9,689 13,300 17,700 28,760 27,318 6, ,070 CHILE ACQUISITIONS 26,089 64,619 26, ,730 PERU GREENFIELDS 564 8,384 8,993 24,512 13,600 37,000 58,918 6,082 12, ,553 PERU ACQUISITIONS 62,547 25,400 5,000 4,000 69, ,947 COLOMBIA GREENFIELDS 22,000 11,800 38,500 71,500 COLOMBIA ACQUISITIONS TOTAL 194,745 55,651 83,708 24,595 81,801 38,700 81, ,400 37,400 87, ,000 35% OF THE CURRENT TOTAL GLA IS THE RESULT OF M&A ACTIVITY Source: Parque Arauco 25

26 INVESTMENT HIGHLIGHTS ONE IMPORTANT AND SOMETIMES FORGOTTEN FEATURE OF OUR BUSINESS IS THE OPTIONALITY RELATED TO EXPANSIONS OF EXISTING SHOPPING CENTERS EXPANSIONS COMPLETED IN THE LAST 5 YEARS HAVE ADDED 78,844 M 2 EXPANSIONS IN PROGRESS LUXURY DISTRICT PARQUE ARAUCO KENNEDY 1,000 m 2 PARQUE ARAUCO KENNEDY 7,428 M 2 ARAUCO MAIPÚ 20,733 M 2 ARAUCO CHILLÁN 6,500 M 2 MEGAPLAZA NORTE 18,500 m 2 MEGAPLAZA CHIMBOTE 2,500 m 2 PREMIUM OUTLET BUENAVENTURA 5,500 M 2 MEGAPLAZA NORTE 34,183 M 2 INOUTLET FAUCETT 2,500 M 2 MEGAPLAZA EXPRESS CHINCHA 1,000 m 2 MEGAPLAZA EXPRESS VILLA CHORRILLOS 500 m 2 PARQUE LAMBRAMANI 2,000 M 2 Source: Parque Arauco 26

27 INTRODUCTION TO PARQUE ARAUCO OUR OPERATIONS INVESTMENT HIGHLIGHTS FUTURE DEVELOPMENTS

28 FUTURE DEVELOPMENTS 2015 AND ONWARDS Parque Arauco has announced projects that will add 291,000 m 2 of GLA over the next few years. Developments have been announced in Chile, and Colombia and the total investment is estimated at US$ 749 million, with approx. US$ 375 million left to invest. GREENFIELD PROJECTS Arauco Premium Outlet Coquimbo Various Projects Arauco Express Arauco Antofagasta Various Projects MegaPlaza MegaPlaza Express Jaen Outlet Lurín Various Projects SCP Viamix Colonial Parque La Colina Arauco Premium Outlet Bogotá Subtotal Country Chile Chile Chile Colombia Colombia Format Outlet Strip Center Neighborhood Neighborhood Neighborhood Outlet Strip/Outlet Strip Center Regional Outlet Estimated Opening Date 1H16 1H16 Under development Under development 2H16 1H16 Under development 2H16 1H17 2H16 Total GLA(m 2 ) 6,000 14,000 11,000 25,000 14,500 8,500 19,500 3,000 63,500 13, ,000 % Ownership % 51.00% 55.00% 50.00% 50.00% % 51.00% 51.00% 55.00% % Owned GLA (m 2 ) 6,000 7,140 6,050 12,500 7,250 8,500 9,945 1,530 34,925 13, ,840 Total Investment EXPANSIONS Country Format Estimated Opening Date Total GLA(m 2 ) % Ownership Owned GLA (m 2 ) Total Investment Parque Arauco Kennedy Luxury District Chile Regional 2H15 1, % 1, MegaPlaza Express Villa Neighborhood 2H % MegaPlaza Express Chincha Neighborhood 2H15 1, % MegaPlaza Chimbote Regional 2H15 2, % 1,250 3 MegaPlaza Norte Regional Under development 18, % 9, Subtotal 23,500 12, PROJECTS INCORPORATED 2015 Country Format Estimated Opening Date Total GLA (m 2 ) % Ownership Owned GLA (m 2 ) Total Investment MegaPlaza Pisco Neighborhood 1Q15 14, % 7, El Quinde Cajamarca Regional 1Q15 30, % 30, El Quinde Ica Regional 1Q15 36, % 36, Expansion Arauco Premium Outlet Buenaventura Chile Outlet 1Q15 6, % 6, Viamix Las Malvinas Strip Center 2Q15 2, % 1,020 5 Subtotal 89,500 81, TOTAL NEW LAND BANK 1 33 TOTAL 291, , APPROX. REMAINING INVESTMENT AS OF 06/30/2015 (1) Incorporated into the company s land bank as of the first quarter of

29 FUTURE DEVELOPMENTS PARQUE LA COLINA IS PROGRESSING ONTIME AND WITHIN BUDGET AND SHOULD BE INAUGURATED DURING THE FIRST HALF OF 2017 CONSTRUCTION COMPANY: CONSTRUCTION OVERSIGHT: Construction state: Pile driving completed, currently building third underground level. Commercialization state: Contract with Falabella signed; currently negotiating with cinemas and intermediate stores 29

30 FUTURE DEVELOPMENTS LANDBANK Parque Arauco has a landbank valued at US$183 Million (at acquisition cost), which will be used to support future growth and to develop shopping centers, outlet malls and strip centers in Chile, and Colombia. LAND M 2 % Ownership Total Cost (MMUS$) Quilicura 25,486 3 Buenaventura 115, Chicureo 47,614 8 Los Andes 39,254 5 Others in Chile 55, TOTAL CHILE 283, Parque El Golf San Isidro 14,813 70% 37 Chimbote 42,657 6 Talara 30,675 3 Ica 12,643 4 Chiclayo 6,000 2 Landbank MegaPlaza 156,355 50% 27 TOTAL PERU 263,143 69% 79 Neiva 49,537 8 Valledupar 46, Barranquilla 56, TOTAL COLOMBIA 151, Total 698,641 88%

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