Parque Arauco Accepts Offer to Sell 40 Percent Participation of Arauco Chillán SpA

Parque Arauco S.A. (SSE: PARAUCO) (Bloomberg: PARAUCO:CI) (“Parque Arauco” or “PASA”) announces the promise to execute a purchase and sale agreement with Ameris Parauco Investment Fund, represented by Ameris Capital Administradora General de Fondos S.A., for 40 percent participation in Arauco Chillán SpA, a company that will have UF 1,250,000 (approximately US$ 52 million) in debt.

Arauco Chillán SpA operates the mall Arauco Chillán and will continue under the management and control of PASA, with the remaining 60 percent participation.

The price of the transaction is UF 1,050,937.96 (approximately US$ 44 million) and will result in a profit after taxes for Parque Arauco of approximately Ch$ 23 billion (US$ 34 million). According to IFRS 10 this profit will be recognized directly in equity and not as profit in the income statement.

This transaction is dependent on several conditions and has until April 30, 2019, to be completed.

Currently, Parque Arauco has 1,053,000 m2 of total GLA in Chile, Peru, and Colombia. The company inaugurated its first shopping center in Chile in 1982, entered Peru in 2006 and Colombia in 2008. The company’s assets include 8 regional shopping centers, 1 neighborhood center, 4 premium outlet malls and 15 strip centers in Chile; 6 regional shopping centers, 9 neighborhood centers, 2 premium outlet malls and 3 strip centers in Peru; 3 regional shopping centers and 1 premium outlet mall in Colombia, as well as a land bank to contribute to the company’s future growth plans. For more details, visit the company’s website: www.parauco.com.

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