Who is who in the business of the "Strip Center" in Chile

Three are the groups that had made a space in a heading that in the last few years has been growing very fast.

"If we could import "corners" from other countries, it would be a really good business", assures one of the partner of Kayco International Group, Marcos Kaplún.

Because of the boom in the development of the model of commercial centers -known as "strip centers"- now practically every corner of Santiago is in the sight of the investors.

This market is beginning to mature, and three great actors can already be distinguished clearly. First of them it is Real estate "Valle Oriente", which started in the business four years ago with the project "Paseo los Trapenses". Its partners are, Jaime Sinay, Felipe Israel, Oscar Massera and Andres Zaror. The group bought in 2005 the traditional discotheque "Las Brujas", located in Principe de Gales Avenue, and in agreement with Oscar Massera, this year they should concrete two new projects - one in Maipu and the other one in the Dominicos -, adding to his portfolio a total of 8 projects. And another project could be added, to become effective - before April ends. This one is a real estate project that a society of Chilean and North American capitals want to raise in General Velazquez with the Alameda avenue.

The second great group is the conformed by Sergio Jalaff Sanz and Mario Dabed, owner of the mark "Ellus" in Chile, known as "Administrations and Rents". Created in 1996, they have already seven commercial centers working and they hope to open this year two more: One of those is under construction in Quinchamali and the other one in Valparaiso, taking advantage of the renovation of the coastal edge.

During 2005, this group obtained sales of US$ 2.4 million and in 2006 and they hope to close it with a rise of the 20%.

The manager of operations of "Administrations and Rents", Sebastian Bianchi, said that there are companies taking position in the market, buying Strip centers that are already working, "developed by other managers to obtain a growth more accelerated and to ensure success, but sacrificing profitability".

Alliances

Something similar to the work done by the group led by the ex- general manager of AC Nielsen, Jorge Steiner, Pier Zaccaria, Eduardo Kraizwl and Pedro Strauss. The society that also entered in the restaurant business brought to Chile "Applebees" an American chain. This last one recently made an alliance with the Santander Santiago bank for the first "strip center" inaugurated by them in "Puente Nuevo", in Las Condes. For this year they want to open three new stores. There is so much interest in these tips of projects that, by the end of the last year, Ahumada´s pharmacies reached an agreement with VidaCorp - controlled by Alvaro Saieh- to raise 7 projects, investing near US$ 11 million in the purchase of the land. In addition, Robert Sumar, of manufactures Sumar, is entering the business.

Which are the most demanded streets? They are mainly: Vespucio Avenue, Ossa Avenue, La dehesa, and Jose Domingo Cañas.

The concept of "strip center" has been changing. At first these had a surface of 7 thousands square meters, but today they have been reducing, and now they are between 800 and 3.800 square meters. The strip centers are located in the mains corners of the capital, and they are always situated in shape of L to take advantage of the place.

Besides, most of these projects have something in common and that is a pharmacy that acts as an anchor store.

MODEL CORNERS: The model of commercial centers proliferates in the corner's avenues of the capital and in the coastal edge in Valparaiso.

Source: El Mercurio

Date: 30/01/2006