Bloomberg News

Chile’s Curauma Soars on Changes to Valparaiso Zoning Regulation

April 13, 2012

Curauma SA (CURAUMA), a Chilean real estate developer, rose the most since September in Santiago trading on bets that zoning law changes may boost the value of its assets.

Curauma increased 8.8 percent to 21 pesos. Trading was suspended after the stock rose a record 24 percent on an intraday basis. The Santiago and Valparaiso bourses and Chile’s electronic exchange all agreed to suspend trading in the stock at 9:51 a.m. local time pending a possible explanation from the company on the record gain. Trading resumed at 12:49 p.m. after the company sent a statement to the exchanges.

The increase followed a decree yesterday changing zoning laws in Chile’s Valparaiso region, allowing Curauma to build homes in areas that initially had been only for agricultural use, it said in a statement posted today on the website of the Santiago stock exchange.

“The change to zoning laws will be very positive for the company, as we have said in the past,” Curauma said in the statement.

Curauma’s main asset is a real estate project of the same name located 15 kilometers (9 miles) from the city of Valparaiso, or 104 kilometers from Santiago, and which spans 4,300 hectares of partially developed residential, commercial and industrial areas, according to the company’s website.

Chile’s securities regulator had suspended trading in Curauma’s shares between April 2 and April 9 after its external auditor refused to vouch for the validity of the company’s annual report due to asset valuation discrepancies.

Curauma gave a mandate to S.W. Business to seek strategic partners willing to inject funds in the project, it said in a statement April 2.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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