- The Investment Framework Agreement defines the terms of Pei’s participation regarding the format, amount, and limit of the contributions the vehicle will make in connection with this expansion.
- The mall’s north expansion will have a total leasable area (GLA) of 21,409 square meters and is divided into two phases, the first of which will be ready in the second half of 2021.
- Pei, owner of 49% of the current area of Jardín Plaza Cali mall, thereby reaffirms its stake in this commercial property, which has performed very positively in recent years.
Bogotá, April 9, 2021, Pei, the leading real estate investment vehicle in Colombia, confirmed, through an Investment Framework Agreement, its participation in and support for the expansion of the north zone of the Jardín Plaza Cali shopping center.
The Investment Framework Agreement
It sets a fixed, maximum price per built square meter for Pei’s contributions to the expansion. Likewise, it establishes that any additional amount or cost overrun required beyond that stipulated maximum contribution will not be the vehicle’s responsibility.
On this, Jairo Corrales, president of Pei Asset Management, Pei’s real estate manager, said that “this Investment Framework Agreement is how we formalize the opportunity for Pei to continue participating in the growth and consolidation strategy of a traditionally successful shopping center like Jardín Plaza Cali.
Likewise, regarding the Jardín Plaza shopping center, he noted: “this commercial asset, which the vehicle has owned since 2015, has performed positively during that time, including the recent months of pandemic recovery, and has all the conditions to continue establishing itself as one of the leading shopping centers in Cali and the country.”
Regarding this Investment Framework Agreement, Corrales noted: “this type of agreement sets an investment limit for the vehicle and establishes a commitment whereby the autonomous trust developing the expansion must contribute the resulting properties to the Trust through which Pei manages its stake in the shopping center. This is a structure that facilitates the development of a successful portfolio asset while complying with Pei’s prospectus provisions and providing peace of mind to its investors.”
This asset’s addition to Pei’s property portfolio will be finalized once construction is complete and the units are ready for operation.
North Expansion of the Jardín Plaza Cali Shopping Center
This new zone of Jardín Plaza Cali mall will have a leasable area (GLA) of 21,409 square meters, divided into two development phases. The first phase, with 9,507 m2 of leasable area, is expected to be delivered in the second half of 2021. The second phase of the project, with a leasable area of 12,353 m², is projected to begin operating in 2022.
These leasable areas will house retail and service units, which as of today have a leasing progress rate of close to 70% for the expansion project.
Jardín Plaza Cali Shopping Center
This shopping center is recognized as the most important one in southern Cali. It has a leasable area of 15,371 m2 distributed across 168 retail units of various types.
Pei Asset Management, manager of real estate investment vehicles
Pei Asset Management is a company specialized in the structuring and comprehensive management of investment vehicles in Colombia. It has held the highest Portfolio Management Effectiveness rating, G-aaa, awarded by BRC Standard & Poor´s since 2009.
For 14 years, Pei Asset Management has been characterized by its contribution to society’s well-being, democratizing investment opportunities, creating physical spaces that benefit the community, and driving the growth of its partners.
Its expert team works daily to build and maintain long-term relationships with investors, tenants, and other stakeholders.
Pei, the leading real estate investment vehicle in Colombia
Pei Asset Management currently manages the real estate asset portfolio of Pei, the leading real estate investment vehicle in Colombia, valued at COP 6.9 trillion. It comprises 147 properties representing close to 1.05 million m2 of leasable area, located in 30 cities and municipalities across the country.
The diversified vehicle, notable for its variety of asset types, geographic locations, and tenants, includes the following categories: corporate, logistics and industrial, commercial, specialized, and hospitality.
Pei offers a solid investment alternative with attractive returns and high liquidity, prioritizing the building of long-term relationships with its more than 4,500 investors and 1,200 tenants.