Falabella and Mallplaza signed an agreement for the latter’s acquisition of Falabella Perú SAA, which controls 100% of the operations of Open Plaza Perú and 66.6% of Mallplaza in Peru. The value of the transaction amounts to US$848 million, which represents an estimated EV/EBITDA multiple for 2024 of 9.9 times.
Mallplaza owns 33.3% of Mall Plaza Perú SA, owner of four shopping centers in that country, so with the operation it acquires 100% of said company and 11 real estate assets of Open Plaza Perú, achieving a presence in 9 cities. .
For Mallplaza, it means increasing its portfolio by approximately 619,000 m2 leasable, and have shopping centers with land and development potential, adding US$ 81 million of EBITDA to Plaza SA (2023).
In this way, Plaza SA will have an additional growth of 20% compared to the company’s 2023 EBITDA and will consolidate its diversified regional operation in Chile, Peru and Colombia with 2,316 thousand m2.
“In line with our objective of becoming increasingly simple and efficient in our 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,” highlighted Alejandro González, general manager of Falabella.
Fernando de Peña, general manager of Mallplaza, said that growth “is part of Mallplaza’s DNA,” so this transaction will provide assets in Peru that have “excellent locations and organic growth potential.”
“We have a plan to develop nearly 100 thousand m2 leasable in these assets for 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,” said the executive.
Mallplaza acquires Falabella Perú for US$848 million
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.
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 .
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.
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 a EV/EBITDA estimated to 2024 of 9.9 times.
Mallplaza Chile will have 100% of Open Plaza and Mallplaza Perú
As it was an operation between related parties, Falabella and Mallplaza requested the issuance of fairness opinions delivered by international advisors.
The Board of Directors of Mallplaza mandated JP Morgan Securities LLC for such purposes, while the Board of Directors of Falabella mandated Itaú Asesorías Financieras Limitada.
The 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. JP Morgan Securities LLC acted as exclusive financial advisor to Plaza SA on the transaction and Link Capital Partners advised Falabella.
Source: Larepublica
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