Logistic Properties of the Americas Achieves Full Occupancy of Building 100 at Parque Logístico Callao

Rhea-AI Summary

Logistic Properties of the Americas (NYSE American: LPA) has announced full occupancy of Building 100 at their Parque Logístico Callao (PLC) facility in Lima, Peru, following a new five-year USD-denominated lease for 63,103 square feet with a Grupo Intercorp subsidiary. The lease brings PLC's existing 421,321 square feet of Gross Leasable Area (GLA) to 100% occupancy.

Upon completion, PLC will comprise four Class A buildings totaling 1,044,432 square feet of GLA. The facility, located next to Jorge Chávez International Airport, is designed to meet EDGE certification standards, with some buildings targeting LEED Gold certification. The project is expected to generate 300 construction jobs and 1,000 operational jobs when fully completed.

Positive

• 100% occupancy achieved for Building 100 and existing GLA
• Five-year USD-denominated lease signed, protecting against currency risk
• Strategic location near Jorge Chávez International Airport serving 11M+ population
• Total project scope of 1,044,432 square feet of Class A logistics space

Negative

• None.

Insights

Real Estate Investment Analyst

The successful lease execution at Parque Logístico Callao represents a significant milestone in LPA's Peru operations. The new USD-denominated, five-year lease for 63,103 square feet achieves 100% occupancy of Building 100, demonstrating robust demand in Lima's logistics market. The dollarization of lease payments provides a natural hedge against local currency volatility, enhancing revenue stability.

The property's strategic location near Jorge Chávez International Airport positions it perfectly for last-mile logistics, important in Peru's rapidly growing e-commerce sector. The total project scope of 1,044,432 square feet of GLA across four buildings signals substantial growth potential. The EDGE and LEED Gold certification pursuits should command premium rents and attract quality tenants, while potentially reducing operating costs through improved energy efficiency.

The full occupancy achievement in Building 100, coupled with 100% pre-leasing of space under construction, indicates strong market fundamentals and suggests potential for rental rate growth in future lease negotiations. The tenant mix, including a subsidiary of Grupo Intercorp, adds creditworthy occupancy to the rent roll, reducing default risk.

Market Research Analyst

The lease signing reflects the broader trends in Peru's logistics sector, where premium warehouse space remains undersupplied despite growing demand from e-commerce and retail operations. Lima's logistics market is experiencing a fundamental shift as retailers optimize their supply chains, particularly in the Callao submarket, which serves as a important gateway for international trade.

The project's employment impact - creating 300 construction jobs and 1,000 permanent positions - will generate positive economic multiplier effects in the local economy. The facility's modern specifications and sustainability features align with evolving tenant requirements and ESG considerations, potentially providing a competitive advantage in tenant retention and attraction.

The commitment from a Grupo Intercorp subsidiary validates the facility's strategic importance in Peru's retail distribution network. This lease transaction suggests strong market absorption of Grade A logistics space, which could support further development in the sector and potential rent growth as supply remains constrained relative to demand.

LPA Strengthens its Position as a Leading Logistics Hub in Peru

SAN JOSE, Costa Rica--(BUSINESS WIRE)-- Logistic Properties of the Americas (NYSE American: LPA) (“LPA” or the “Company”) announced the execution of a USD-denominated lease with a leading third-party logistics provider and a subsidiary of Grupo Intercorp at their Parque Logístico Callao facility (PLC) in Lima, Peru. This five-year lease for 63,103 square feet replaces a prior lease and brings Building 100 to full occupancy, thereby reinforcing PLC’s status as Lima’s premier logistics hub.

With the new lease, PLC’s 421,321 square feet of existing Gross Leasable Area (GLA) currently operating and under construction is now 100% leased, underscoring the current growing demand for first rate logistics facilities in the Callao submarket of Lima. Our new tenant will use the space to enhance last-mile distribution services for major Peruvian retailers, reflecting PLC’s strategic position in the country’s supply chain network.

“We’re starting 2025 with strong momentum, setting a positive tone for the year ahead. The robust growth in the consumption-driven economies of our foundational markets continues to drive opportunities for sustained success,” said Esteban Saldarriaga, CEO of LPA. “Achieving 100% capacity of Building 100 highlights the strong long-term earnings potential of LPA’s fully dollarized platform in Peru and the strategic location of its facilities.

Alvaro Chinchayán, LPA’s Country Manager in Peru, added: "This lease evidences a robust sustained demand for institutionally owned and managed superior logistics facilities in Peru, as well as LPA’s ability to attract select tenants to our strategically located, world-class properties. We therefore continue to effectively address the increasing demand for premium logistics solutions in underserved markets, furthering operational excellence, while enabling regional economic growth."

Upon its completion, PLC will feature four state-of-the-art Class A buildings totaling 1,044,432 square feet of GLA. Located adjacent to Jorge Chávez International Airport and reaching Lima’s population of more than 11 million, PLC is designed to meet EDGE certification standards, with select buildings also targeting LEED Gold certification. These sustainability features, coupled with cutting-edge infrastructure, make PLC the ideal choice for a diverse range of logistics operations.

Beyond enhancing local infrastructure, PLC is expected to create up to 300 jobs during the remainder of its construction and an additional 1,000 jobs once fully operational, providing a significant boost to Lima’s economy and benefiting its local communities.

About Logistic Properties of the Americas

Logistic Properties of the Americas is a leading developer, owner, and manager of institutional quality industrial and logistics real estate in high-growth and high-barrier-to-entry markets in Central and South America. LPA’s customers are multinational and regional e-commerce retailers, third-party logistic operators, business-to-business distributors, and retail distribution companies among others. LPA expects its strong customer relationships and insight to enable future growth through the development and acquisition of high-quality, strategically located facilities in its target markets. As of September 30, 2024, LPA’s operating and development portfolio was comprised of 31 logistics facilities in Costa Rica, Peru and Colombia totaling more than 491,000 square meters (or approximately 5.3 million square feet) of gross leasable area. For more information visit https://ir.lpamericas.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20250116731573/en/

Investor Relations

Camilo Ulloa

Logistic Properties of the Americas

+506 6293 9083

camilo@lpamericas.com

Barbara Cano/Ivan Peill

InspIR Group

barbara@inspirgroup.com / ivan@inspirgroup.com

Source: Logistic Properties of the Americas

FAQ

What is the total square footage of LPA's Parque Logístico Callao project when completed?

Upon completion, Parque Logístico Callao will feature four Class A buildings totaling 1,044,432 square feet of Gross Leasable Area (GLA).

How much space was leased in the new LPA Building 100 agreement?

The new lease agreement covers 63,103 square feet of space in Building 100 at Parque Logístico Callao.

What is the current occupancy rate of LPA's operational space in Lima, Peru?

LPA's existing 421,321 square feet of operational and under-construction Gross Leasable Area in Lima is 100% leased.

How many jobs will LPA's Parque Logístico Callao create when fully operational?

The project is expected to create 300 construction jobs and 1,000 permanent jobs once fully operational.

What sustainability certifications is LPA pursuing for Parque Logístico Callao?

The facility is designed to meet EDGE certification standards, with select buildings targeting LEED Gold certification.