What: Falabella has finalized the sale of its shopping center assets in Peru to Mall Plaza for USD 589 million.

Why it is important: This transaction is significant as it simplifies and consolidates Falabella’s real estate operations in Peru, aligning with its strategic goal of streamlining its structure and operations. This consolidation under Mall Plaza will enhance operational efficiencies and scale, positioning Mall Plaza as the largest shopping center operator in South America. The deal not only influences the commercial landscape in Peru but also impacts regional market dynamics by expanding Mall Plaza's presence and operational capabilities.

In a strategic move to streamline operations, Falabella has sold its 66.6% stake in Mall Plaza Peru and its complete stake in Open Plaza Peru to Mall Plaza for $589 million. This sale gives Mall Plaza full control over these entities, significantly expanding its portfolio to include a total leasable area of 619,000 square meters across 15 properties in Peru. This expansion is part of a broader strategy to strengthen Mall Plaza's market share and commercial offerings in South America. The transaction, valued at USD 848 million including operational cash, aims to create a more efficient and unified real estate operation. It will be financed through a mix of cash, debt, and a USD 300 million capital increase. This reorganization is expected to drive growth and operational synergies, benefiting both Mall Plaza and Falabella.

Falabella will sell shopping center assets in Peru to Mall Plaza for almost USD 600 million