Cencosud unit advances Miraflores mall project in Peru

Cenco Malls, the real estate subsidiary of Chilean retailer Cencosud, is outlining its expansion pipeline in Peru. The company is seeking permits for the Cenco Miraflores shopping center in Lima and is in the planning stage for a development in San Juan de Lurigancho on land currently used for a supermarket.

The expansion follows second-quarter earnings where Cenco Malls posted a 27.9% increase in net profit to $90.2 million. Revenue climbed 9.3% to $110.5 million, supported by added commercial space across Chile, Peru, and Colombia, higher office occupancy, and the consolidation of the Plaza Central mall in Bogotá. Adjusted EBITDA rose 9.5% to $99.8 million with a 90.4% margin, while customer visits increased 13.8% to 37 million people.

Peru and Colombia currently account for about 2% to 3% of consolidated revenue, according to Agustín Letelier, CFO of Cenco Malls. Sebastián Bellocchio, CEO of Cenco Malls, stated that the firm will continue seeking investment opportunities in Peru, focusing partly on upgrading existing properties, similar to how Cenco La Molina was built on a prior supermarket site.

In the second quarter, Cenco La Molina added 13,850 square meters of leased space, an increase of 105.9% compared to the same period a year earlier. To fund its pipeline, Cenco Malls issued $112 million in 30-year bonds during the quarter and ended June with net leverage of 2.3 times.