What: Falabella Group sells Open Plaza Fontova shopping center in Conchalí, Chile, for USD 13.8 million, with plans to convert the property into social housing and an urban park.

Why it is important: This sale demonstrates Falabella's continued execution of its asset optimization strategy, while contributing to urban development through the property's transformation into social housing.

Falabella has completed the sale of Open Plaza Fontova, a shopping center that previously housed Tottus supermarket and Sodimac Constructor, to infrastructure fund Desarrollo País for USD 13.8 million. The property, which has remained closed since suffering fire damage during the 2019 social unrest, will be redeveloped into a mixed-use project combining social housing with an urban park. This transaction is part of Falabella's broader asset reorganization strategy announced in November 2023. While the company declined official comment, sources indicate that the asset disposal program remains open to new opportunities based on merit. This sale follows the August 2024 transaction of Open Plaza Kennedy to Parque Arauco for approximately USD 200 million, which included shares in the Courtyard by Marriott hotel operation.

IADS Notes: This sale aligns with Falabella's strategic transformation in 2024. Following the USD 589 million sale of shopping center assets in Peru to Mall Plaza, and the USD 200 million Open Plaza Kennedy transaction, this deal demonstrates continued portfolio optimization. The timing is significant as Falabella shows strong financial recovery, with Q3 2024 profits reaching USD 97 million, indicating these sales are part of a strategic transformation rather than distressed disposals.

Falabella sells one of its Open Plaza shopping centers