Peru Real Estate Transaction: Mallplaza Acquires Falabella Shopping Centers for $848 Million

2024-04-16 14:57:31

As part of the restructuring that the Falabella group is going through in the region, an agreement was announced for the transfer of Falabella shopping centers to Mallplaza in the country. And today it was announced that they finally closed this real estate transaction that they started in November. This is the acquisition of Falabella Perú SAA, which controls 100% of the operations of Open Plaza Perú and 66.6% of Mallplaza in Peru, by Mallplaza, which operates the subsidiary Plaza SA. The value of the transaction amounts to US$848 million, which represents an estimated EV/EBITDA multiple for 2024 of 9.9 times.

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Mallplaza, as recalled, owns 33.3% of Mall Plaza Perú SA, owner of four shopping centers in Peru, so with this acquisition it will now have 100% of the company and a total of 11 real estate assets of Open Plaza Perú, gaining presence in nine cities. With this, Mallplaza expands its portfolio by approximately 619,000 leasable m2, as well as having shopping centers with land and development potential, adding to Plaza SA US$ 81 million of EBITDA (2023) and an additional growth of 20% compared to EBITDA. of the company’s 2023. And thus it will consolidate its diversified regional operation in Chile, Peru and Colombia with 2,316 thousand m2.

With this move, framed in the search to reduce Falabella’s debt and safeguard its operations, Mallplaza will now have 15 assets.

Alejandro González, general manager of Falabella. maintains that this is in line with its objective of being increasingly simpler and more efficient in its structure and operation. “This transaction will allow us to consolidate our real estate operations in Peru under a single company. This reorganization will benefit both companies,” he stated.

For his part, Fernando de la Peña, general manager of Mallplaza, comments that growth is part of Mallplaza’s DNA, so this transaction will provide us with assets in Peru that have excellent locations and potential for organic growth.

“We have a plan to develop nearly 100 thousand leasable m2 in these assets over the next five years, thus strengthening our commercial offer and market share. Furthermore, by consolidating both companies on a single platform and achieving greater scale in the operation, we will be able to incorporate important synergies and efficiencies in Peru,” he advances.

Given

Diversification and m2 of malls

Presence _ With this transaction, Plaza SA will expand its regional diversification, thus achieving a distribution of leasable square meters (GLA) of 62% in Chile, 27% in Peru and 11% in Colombia.

Vale specifies that Falabella Perú SAA, the company that owns Open Plaza Perú SA and 66.6% of Mall Plaza Perú SA, also owns 98.5% of Inmobiliaria SIC, a company that was excluded from the agreement, owner of land and a power center.

What does the transaction consist of?

Mallplaza will launch a takeover bid for 100% of Falabella Perú SAA, the company that owns said assets, for a Public Acquisition Offer value of US$589 million, with potential adjustments typical of this type of operations.

Open Plaza has 11 shopping centers in the country. (Photo: Zaditivos)

The assets involved were valued at US$843 million plus operational cash of US$5 million. Thus, the transaction would be valued at US$ 848 million, resulting in an estimated EV/EBITDA for 2024 of 9.9 times.

This transaction will be financed with a combination of cash, debt and a capital increase in Plaza SA for up to US$300 million, with the objective of maintaining the company in the leverage ranges according to Mallplaza’s risk classification. For the moment, Falabella has no intention of participating in the capital increase, except for relevant changes in market conditions.

Given

Behind the acquisition

Operation _ JP Morgan Securities LLC acted as exclusive financial advisor to Plaza SA on the transaction and Link Capital Partners advised Falabella.

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