- The Investment Framework Agreement defines Pei’s participation terms regarding the format, amount, and limits of contributions that the vehicle will make in connection with this expansion.
- The northern expansion of the shopping center will have a total leasable area (GLA) of 21,409 square meters and is divided into two phases, with the first phase being completed in the second half of 2021.
- Pei, the owner of 49% in the current area of the CC Jardin Plaza Cali shopping center, thus confirms his participation in this commercial property, which has shown very positive performance in recent years.
Bogotá, 9 April 2021 Pei, real estate investment vehicle, the leading company in Colombia, confirmed its commitment and support for the expansion of the northern area of the Jardín Plaza Cali shopping center through a framework investment agreement.
The Investment Framework Agreement
Establish a fixed and maximum price per square meter of constructed area for Pei’s contributions to the expansion. Similarly, any additional or overage costs required beyond this stipulated amount as a vehicle contribution will not be the responsibility of the same.
In this regard, Jairo Corrales, President of Pei Asset Management, the real estate manager for the Pei vehicle, stated that “this Investment Framework Agreement is the way we formalize Pei’s opportunity to continue participating in the growth and consolidation strategy of a traditionally successful shopping center such as Jardín Plaza Cali.
Furthermore, regarding the Jardín Plaza shopping center, it was stated: “This commercial property, which has been owned by the company since 2015, has shown positive performance over that time, including the recent months of pandemic recovery, and is well-positioned to continue as one of the leading shopping centers in Cali and throughout the country.”
In relation to this Investment Framework Agreement, Corrales highlighted: “this type of agreement establishes an investment limit for the vehicle and sets out a commitment whereby the autonomous entity that develops the expansion must contribute the properties resulting from it to the Trust through which Pei manages its stake in the shopping center. This is a mechanism that facilitates the successful development of an asset within the portfolio, while respecting the provisions of the Pei prospectus and providing peace of mind for its investors.”
The acquisition of this property into Pei’s real estate portfolio will be finalized once construction is complete and the premises are ready for operation.
Expansion of the Garden Plaza Shopping Center in Cali (North)
This new area of the Jardín Plaza Cali shopping center will have a gross leasable area (GLA) of 21,409 square meters, divided into two phases of development. The first phase, with a GLA of 9,507 square meters, is scheduled for completion in the second half of 2021. The second phase of the project, with a GLA of 12.353 square meters, is projected to begin operation in 2022.
These leaseable areas will be designated for commercial and service businesses that currently have a near 70% occupancy rate of the project’s expansion.
Centro Comercial Jardín Plaza Cali
This shopping center is recognized as the most important in the southern part of the city of Cali. It has a leasable area of 15.371 square meters, distributed across 168 commercial units of different types.
Pei Asset Management, real estate investment vehicle management company
Pei Asset Management is a company specializing in the structuring and comprehensive management of investment vehicles in Colombia. It holds the highest rating for Portfolio Management Efficiency (G-aaa) awarded by BRC Standard & Poor’s since 2009.
For the past 14 years, Pei Asset Management has been characterized by contributing to the well-being of society through the democratization of investment opportunities, creating physical spaces that benefit the community, and supporting the growth of its partners.
Their expert team works daily to build and maintain long-term relationships with investors, tenants, and other stakeholders.
Pei, real estate investment vehicle, leading company in Colombia
Currently, Pei Asset Management manages the real estate portfolio of Pei, a leading real estate investment vehicle in Colombia, valued at approximately $COP 6.9 trillion. This includes approximately 147 properties representing around 1.05 million square meters of leasable area, located in 30 cities and municipalities across the country.
The diversified portfolio, characterized by its asset types, geographic location, and tenants, includes the following categories: corporate, logistics, industrial, commercial, specialized, and accommodation.
Pei offers a solid investment alternative with attractive returns, high liquidity, and a priority on building long-term relationships with its over 4,500 investors and 1,200 tenants.