Parque Arauco S.A. (SSE: PARAUCO; Bloomberg: PARAUCO:CI) (“Parque Arauco”) announces that it´s subsidiary, Inversiones Colombianas Arauco S.A.S. (“INVECA”), signed a Term Sheet with the real estate developer and contractor IC Constructora S.A. (“IC”) to develop a multi-family residential property in Bogota, Colombia, of which Parque Arauco (INVECA) will own 80% and IC will own 20%, with the option for INVECA to acquire the remaining 20% of IC, and for IC to sell it, subject to certain terms and conditions that must be fulfilled over the years following the start of operations. The project will require a total investment, at the asset level of approximately US$ 11 million.

The Project called ¨Proyecto Calle 72¨ consists of the construction of a residential property with an approximate total GLA of 6,500 m2 of residential space and 1,500 m2 of commercial space. This 7-floor building is expected to have 132 apartments, 111 parking spaces, and will also include amenities such as a gym, co-working area, BBQ area, game room, washing machine room, and a rooftop panoramic terrace. The project will begin construction in 2022 and is expected to be completed in 2024.

Eduardo Pérez Marchant, General Manager of Parque Arauco International mentioned, “This agreement marks the beginning of our investments in stand-alone properties of an asset class distinct from shopping malls. We believe that multi-family properties will grow strongly in Colombia over the next few years. We are convinced that investing in this type of real estate will contribute to reinforcing our strategic growth and profitability pillars. On the other hand, obtaining expertise in multi-family will allow us to continue developing successful shopping centers in central areas of important cities in the region, densifying and increasing the profitability of these commercial projects.”

In the next few months, IC and INVECA will advance in a due diligence process, defining the terms and conditions of the project including a general agreement, a project trust agreement, a construction management contract and a construction contract.

Currently, Parque Arauco has 1,069,500 m2 of total GLA in Chile, Peru, and Colombia. The company inaugurated its first shopping center in Chile in 1982, entered Peru in 2005 and Colombia in 2008. The company’s assets include 17 regional shopping centers, 10 neighborhood center, 7 premium outlet malls, 21 strip centers and 9 offices, medical centers, and hotels across Chile, Peru and Colombia. In addition, Parque Arauco has a land bank to contribute to the company’s future growth plans. For more details, visit the company’s website: www.parauco.com.