COMPANY DESCRIPTION
Parque Arauco is focused exclusively on the acquisition, development and management of shopping centers, primarily in Chile. Parque Arauco is known as a leader in the retail sector for its role in professionalizing operations and introducing modern formats. Parque Arauco opened its flagship mall, Parque Arauco Kennedy, in 1982, a groundbreaking event in the Chilean retail sector as the shopping center format in Chile was still untested. Parque Arauco also has a presence in Argentina through its partial ownership of Alto Palermo and has expanded to Peru and in Colombia through shopping center development and ownership activities. EI sold its public shares in Parque Arauco in a private transaction in 2009.

MARKET OVERVIEW
The retail industry in Chile has grown immensely since its formal introduction in 1981. Macroeconomic factors including an expanding middle class, increased per capita income growth and access to consumer credit have contributed to the sector's strength. Changing consumer habits such as increasing demand for broad product assortment, parking needs and more limited leisure time have made the shopping mall format a more attractive destination. Additionally, Chile is the only sovereign borrower in South America with an investment grade rating (AA rating from S&P since 1992). The Chilean stock market is supported by pension funds, comprising approximately US$75 billion in assets, which are required to invest at least 70% of their assets domestically, making retail property in the country a compelling sector.