Cencosud appeals to Supreme Court over land dispute in Ñuñoa

Cencosud has appealed to Chile's Supreme Court after the Santiago Court of Appeals confirmed that the retailer is illegally occupying a 378-square-meter fiscal plot in the Ñuñoa district of Santiago. The parcel is located on Avenida Grecia, near Avenida José Pedro Alessandri, where it serves as a truck loading and unloading yard with access barriers for a shopping center and supermarket operated by the group.

The dispute traces back to 1998, when the Municipality of Ñuñoa authorized the Pontifical Seminary of Santiago to use part of the area, then a public-use space. The seminary later leased adjacent plots to Supermercados Montecarlo, which was subsequently acquired by Cencosud. In 2008, the plot was rezoned and transferred to the State. Chilean courts ruled that municipal authorization ceased to be valid once the municipality lost jurisdiction over the property.

The State sued Cencosud in 2020 to reclaim the land and demand compensation. In 2023, the First Civil Court of Santiago ordered the return of the plot and ruled that Cencosud must indemnify the Treasury. In March, the Santiago Court of Appeals upheld the order to return the land once the judgment is final, ruling that Cencosud failed to prove it held a valid concession or authorization after ownership transferred in 2008.

The appellate court dismissed the immediate compensation order, ruling that the illegal occupation finding must become final before the State can quantify damages. Both parties have now appealed to the Supreme Court. The State Defense Council, which argues the illegal occupation dates to February 2008, is seeking to reinstate the company's upfront liability for lost rental income and lack of access.