The construction of the residential rental building in Parque Arauco Kennedy is part of the third stage of expansion of the shopping center and will represent an investment of approximately US$60 million.
The Chilean retail consortium Parque Arauco announced during its Ordinary Shareholders' Meeting its expansion strategy for iconic assets, providing details of a new expansion phase in its main shopping center in Chile, Parque Arauco Kennedy, as well as the MegaPlaza reconversion project Ica, in Peru.
As part of the third phase (Kennedy Phase) of the Parque Arauco Kennedy Master Expansion Plan, the company took a relevant step by incorporating a multifamily building within a shopping center for the first time. The new tower will have 414 residential units, 1,300 m² of amenities and a rooftop . The project initially contemplates an investment of approximately US$60 million.
It should be remembered that its first stage (Rosario Phase) included the inauguration in 2021 of the new Rosario sector, where the 25,000 m² Falabella flagship store, commercial stores and new parking lots are located.
Meanwhile, Phase 2 (Cerro Colorado Phase) is in full development and will have a new access to the shopping center, parking, four retail floors, three gastronomic floors and a 23,400 m² office tower; all in front of the new Metro station being built in Parque Araucano. The new retail space is projected to open in 2025 and the office tower in 2026.
Eduardo Pérez Marchant, General Manager of Parque Arauco, commented that “we made the decision to incorporate a multifamily building in a shopping center for the first time. After carrying out an exhaustive analysis of different real estate uses and also reviewing international trends, we became convinced that there is a lot of value in promoting the first urban center in Chile under the “ work, live & play ” concept, that is, where you can work, live, shop and entertain, all in one place.”
With this announcement, the company will add seven multifamily buildings regionally. Three in Chile: Calle Concón (Central Station), Calle Mitjans (Macul) and Av. Kennedy (Las Condes); one in Peru with the Calle La Mar project (Lima); and three in Colombia with Calle 72, Calle 94 in Bogotá and Ciudad del Río, in Medellín.
Likewise, the company announced the execution of its Master Plan for MegaPlaza Ica, a shopping center located in the city of Ica, Peru, the second largest asset in leasable area (GLA) of Parque Arauco in said country and the third most important in terms of of EBITDA.
The expansion of 6,500 m2 of leasable area includes the construction of a new open-air plaza in Boulevard format. This sector will replace the current parking lot with green areas and entertainment alternatives.
In addition, it contemplates underground parking, a new financial and services sector, reconversion of the old banking area into new retail , a gastronomic area, a new SmartFit gym, drop-off for taxis and private vehicles and improvement of pedestrian access.
Eduardo Pérez Marchant commented that “given its relevance and growth potential, we decided to include MegaPlaza Ica within the general expansion strategy of the company's iconic assets. This first phase of reconversion is part of an ambitious Master Plan undertaken by acquiring the best mall in the city, incorporating new green areas, enriching the commercial mix, and focusing commercial efforts on improving the experience of our tenants and end customers.”
The asset, which was born under the name of El Quinde Ica, was incorporated into Parque Arauco's portfolio in 2015 with the acquisition of the company Ekimed.
Since then, important improvements have been made to the infrastructure and mix of the shopping center, currently having three commercial levels and brands such as Falabella, Ripley, Maestro (Sodimac), Metro, SmartFit and H&M. In 2023 the shopping center was part of the rebranding process, becoming “MegaPlaza Ica”.
