Exito, Bancolombia Affiliate FIC Ink US$256 Million Investment Deal in ‘Viva Malls’
Medellin-based retail giant Grupo Exito announced December 27 that Fondo Inmobiliario Colombia (FIC) – partly owned by Medellin banking giant Bancolombia – signed a deal whereby FIC will invest COP$770 billion (US$256 million) in Exito’s “Viva Malls” subsidiary.
Viva Malls has 12 commercial malls already operating in Colombia and two nearly complete, with a total of 434,000 square meters of space available through 2018.
Under the latest deal, Éxito will maintain a 51% share in Viva Malls, while FIC will supply enough capital to have a 49% stake, according to Éxito.
FIC describes itself as one of Colombia’s biggest private-equity firms, with a special focus on real estate. It’s administered by Bancolombia Fiduciary and Bancolombia is one of its principal shareholders, according to FIC.
Viva Malls today is valued at nearly COP$1.6 trillion (US$532 million), with 2018 estimated earnings before interest, taxes, depreciation and amortization of some COP$140 billion (US$46.5 million) and a cap rate estimated at 8.7% to 8.8%, according to Exito.
Grupo Exito will continue as the principal manager and director of new and existing Viva Malls, under the deal.
Viva Malls shopping centers are in Medellin, Envigado, Bello, La Ceja, Bogota, Tunja, Barranquilla, Riohacha and San Antonio. The Viva shopping-center chain expects to receive about 118 million clients per year by 2018, Grupo Éxito president Carlos Mario Giraldo added.
