May 19, 2016 / 5:06 PM / 2 years ago

UPDATE 1-Walmart Chile to sell 10 malls for $639 million

(Adds quote, context about buyer, share price)

SANTIAGO, May 19 (Reuters) - Walmart Chile has struck a deal to sell 10 Espacio Urbano malls to local insurance companies Compania de Seguros Confuturo and Compania de Seguros CorpSeguros for 441.9 billion pesos ($639.2 million), it said in a note to regulators on Thursday.

Confuturo and CorpSeguros compose part of Inversiones la Construccion, or ILC, one of Chile’s largest insurance consortiums.

The sale includes 250,000 square meters (2.7 million square feet) of mall space that accommodates annual visits of 70 million people, Walmart Chile said in a statement.

The company added that its Lider and Express de Lider supermarket chains would remain in the malls as tenants.

The deal allows Walmart Chile to focus on its main business of supermarkets and “continue rolling out our expansion plan in the country,” Chief Executive Officer Horacio Barbeito said in the statement.

According to the note to regulators, the deal has a one-year deadline to take effect.

Confuturo and CorpSeguros already owned 200,000 square meters of rentable space in Chile. The new deal will make them among the nation’s largest commercial landlords.

ILC’s Santiago-listed shares were down 2.47 percent at midday.

$1=691.32 pesos Reporting by Gram Slattery; Editing by Chizu Nomiyama and Lisa Von Ahn

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