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Chile

Chile. Chile. Chile at a Glance. Chile. More evolved financial markets – closer to U.S model than other Latin American countries. Dynamic market-oriented economy which is characterized by a high level of foreign trade.

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Chile

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  1. Chile Chile

  2. Chile at a Glance Chile • More evolved financial markets – closer to U.S model than other Latin American countries • Dynamic market-oriented economy which is characterized by a high level of foreign trade • Chilean peso's rapid appreciation against the U.S. dollar in recent years has helped dampen inflation • Limiting factor for Chile – markets are smaller compared to other Latin American markets Source: The Economist

  3. Major Office Sub-markets Chile Centro Las Condes Vitacura Providencia

  4. Major Office Sub-markets Chile Over 1.5 million square meters of Class A stock in Santiago’s main office submarkets Source: U.S. Equities Realty

  5. Market Statistics - Santiago Chile The completion of new stock has driven rental rates down Vacancy rates have increased due to the new stock delivered Source: Cushman & Wakefield / Contempora

  6. Market Statistics - Santiago Chile Despite the dramatic increase in new space delivered, net absorption remained positive Source: Cushman & Wakefield / Contempora

  7. Recent Lease Transactions - Santiago Chile Source: U.S. Equities Realty LLC • Alcantara Building • Titanium La Portada Tower • Torres del Parque

  8. Office Market Conclusions Chile • Rates are expected to stabilize due to excessive building 2008-2010 • Reconstruction after the earthquake will contribute to higher real economic growth both in 2010 and 2011 • Protection from inflation due to rent being paid in US$ • Rents are quoted in Unidades de Fomento(UF), a monetary unit related to Consumer Price Index • The favorable macro-economic outlook will continue to cause net absorption over the next few years Source: Colliers International

  9. Challenges Chile • High land prices make it more difficult for small-scale construction (build-to-suit) • Scale of the market is small for a large platform of investment • Competition for FDI with other Latin American countries

  10. Opportunities – Mixed-Use Development Chile High land prices had obliged developers to maximize the use of these sites Sizable lots in excellent urban locations remain Considerable amount of capital in the local market has made these large-scale projects more feasible

  11. Other Opportunities Chile Logistic Centers Medical Office Buildings Residential

  12. Nove International LLC1006 S. Michigan Ave, Suite 225Chicago, IL 60605+1 708 462 2010

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