A rococo palace in the middle of the rubble

In the district of Rimac in Lima you can find a surprising building: the Quinta de Presa. A building in French rococo style, although it is now very deteriorated. The best way to go here is with a taxi, as it is not very close to the bridge. To go walking is also a bit off putting, as women warn you from their windows to go away, that it is dangerous here. The building is already since 1920 property of the state and since that time designated to become a museum for colonial art. Unfortunately that is still the plan, more than 8o years later. That is probaly not going to happen soon, as the building is very far from any touristic route and much has to be done to restore it. But it is a wonderful building, with an interesting story.

The first mentioning of the area, where the Quinta de Presa is now standing, was in 1690. In that year a flour mill, house and vineyard were sold by Mart�n Ar�as del Castillo to Jos� Blanco Rej�n. In 1696 his widow Sebastiana Ramos Galv�n sold the property to Juan Bautista de la Rigada. He died in 1706. Two years later Sebastiana sold the mill to Juan Bautista Palacios. Apparently it had reverted back to her upon the death of Se�or de la Rigada. Juan Bautista Palacios was married to Do�a Isabel Carrillo de Albornoz y de la Presa, sister of the first Duque de Montemar and the fourth Conde de Montemar. The couple did not have any children and after the death of Juan Bautista his widow became owner of the mill.

In her will of February 28th 1765 Do�a Isabel bequeathed �el Molino de Polvora en el calle de Molambo� to her nephew Don Pedro Carrillo de Albornoz y Bravo de Laguna (* 9-11-1734 + 26-6-1798). Pedro was colonel of the militia of the regiment of the Villa de Huaura, north of Lima, where he owned the haciendas Vilcahuara and San Ildefonso de Huaito. He constructed the present day palace, although the exact date of construction is unknown. Pedro was married to Do�a Maria Josefa Petronila de Salazar y Gavi�o (* 1748 + ..-4-1825), daughter of Don Agust�n de Salazar y Mu�atones, Conde de Monteblanco and owner of among others the hacienda San Jos� in Chincha, and Maria Francisca Gavi�o y Ria�on. She remarried in 1802 Domingo de Oru� y Mirones and lived with him on the hacienda Vilcahuara.


Don Pedro Carrillo de Albornoz y Bravo de Laguna died June 26th 1798. The day before he had made his last will in which his only child, a daughter, inherited all his possessions, including � los de molina de arina y casa Huerta�. The name Quinta de Presa was only mentioned for the first time in 1829. For the valuation of the inheritance and inventory was made of his goods. In February 1799 the Molina was valued at 110.029 pesos and the garden and huerta at 12.467 pesos. Houses in the calle Molambo were part of the inheritance. The daughter, Do�a Maria Josefa Carrillo de Albornoz y Salazar, was married in 1789 to a cousin Don Gaspar Carrillo de Albornoz y Vega Cruzat, son of the Marquesa de Feria. She was probably mentally backward, as her mother made a will in her name on October 24th 1829. In which some cousins were named as heirs. In this will the following is mentioned: �la Quinta de esta Capital que llama de Presa�. She died November 5th 1829. Her will was not carried out, as an uncle Juan Antonio Carrillo de Albornoz y Bravo de Laguna took over and willed the property to another cousin: Do�a Maria de la Puente y Carrillo de Albornoz.


The following decades are spent by litigations of the will of Do�a Maria Josefa by Do�a Maria. Finally on November 17th 1842 the hacienda Vilcahuara and the Quinta o Huerta de Presa y casas en la calle de la Merced y de San Juan become possessions of Do�a Maria. She and her daughter sell the finca Quinta de Presa on January 17th 1846 to Jos� Herouard. At that time the house was between the Casa y Huerta owned by the heirs of Don Jos� de Ag�ero and the Casa y Huerta known as �London�. It passed several times to other owners until it was bought on May 31st 1920 by the state with the aim to house a museum for colonial art.



Principal source: �El inventario de la Quinta de Presa� by Ella Dunbar Temple, Revista de la Sociedad Peruana de Historia, Lima, 1948

The sore points of Apur�mac

Abancay � 2 March 2009 � Since February I work two days a week for a NGO (Non Governmental Organization) Asociaci�n Pro Desarrollo Per� Vida �APRODE PERڔ.This is a small Peruvian NGO with projects in the poorest areas of the country. End of February we were in the region Apurimac to sign partnerships with two districts, Pacobamba and Huancarama. Apur�mac is one of he poorest regions of Peru; in 2007 69.5% of the population lived in poverty according to government data (only Huancavelica has a higher percentage: 85.7%). The population of less than half a million inhabitants is largely of Indian origin. They live of small scale agriculture and animal husbandry. The capital is Abancay. The country side is magnificent: green in all shades, high mountains, deep ravines, a patchwork of fields on the sides of the mountains. The recently excavated Inca city Choquequirao, sister city of Macchu Picchu, lies to the north of Abancay in the region of Cuzco. In Apur�mac there are many ruins of the Chanka�s and Inca�s and of course native andean forests with bears. Very little tourists visit the area, as there is hardly any touristic infrastructure.

Only with the nightbus you can reach Abancay. This takes 18 hours. From Lima first six hours south through the desert to Ica and Nazca, then west into the mountains. The journey is very exciting as the road goes up through snowy mountains and then down in many curves and turns to the valley of Abancay. You arrive with a headache of the altitude and nauseous. From Abancay it�s one and a half hour on dirt roads to Huancarama and two hours to Pacobamba. Both the mayor of Huancarama and Pacobamba signed the partnerships with APRODE. The first step will be an investigation of the actual situation regarding education, health, work, culture etc. as a diagnostic. Based on this proposals for projects will be made. Two volunteers, a Peruvian and a French, have started the investigation in Pacobamba. During March one will start in Huancarama as well. Partnership with the local authorities and the population is essential to make projects succeed.


Huancarama is a district with almost 8.000 inhabitants and 25 villages. No other NGO�s are active, as are in other districts. They have contacted Spanish, Belgian and German organizations, but without results. The population is poor and speaks predominantly quechua. On average a family owns one cow, a couple of pigs and some chickens. On little fields (chacra�s) they produce corn and potatoes. They live in houses of mud (adobe). The water supply is a problem, as it rains only three months per year and there are hardly any reservoirs. The health situation of the population and the especially the children is bad, as the eggs and milk they produce is being sold and rice is being bought, leading to deficiency in nutrients, as calcium, iron and other minerals and proteins. To guarantee a better care for children, the national government initiated the Wawa Wasi programme, where children aged 6 months to 4 years are being taken care of, while their parents work their chacra�s. A madre-cuidadora is responsible for a maximum of 8 children. The children get attention and food. Huancarama has 5 wawa wasi�s, which are in a problem as the government has withdrawn it�s financial support caused by budget reductions due to the global financial crisis. Pacobamba has no less than 40! Wawa wasi�s are made possible by joint efforts of the local authorities, the national government and NGO�s.


In Pacobamba (7.000 inhabitants) Gladys Cari, medic at the local Centro de Salud, tells that the biggest health problem is parasitosis, approximately 80-90% of the population has parasites. She has medication, but the food is not properly prepared, the water is contaminated, the people sleep all together in one room and there is insufficient hygiene. The second problem is alcoholism, leading to domestic violence and children that are not properly being taken care of. Young people leave for cities as Abancay and Lima, don�t get work as well and start using drugs. A depressing situation. The landscape is truly wonderful, but the way the people live in their villages is like a festering sore. It�s not only lack of money, but much more of education and dignity.


Romulo Pedrasa, from 2003 till 2006 mayor of Pacobamba, and one of the initiators of the partnership and of starting projects, tells that there is a kind of resistance in the population against change and to do things as they see fit. The people are very introverted. Until the agrarian reform of 1970 the whole area was part of one hacienda of the family Altamirano. Romulo�s father was manager there. Agriculture and animal husbandry were much more professional in those days, but the population was employed and did not get a wage, only food and clothing. With the reforms, the land became property of the community and everybody got a part to work on and a part of the animals. Resulting in disintegration and less professionality. Juan Carlos Flores, a young agriculturalist from Pacobamba, wants to breed better cattle and produce dairy products more professionally. But for that the people have to work together. According to Juan Carlos that will be a challenge as the ego�s can be rather big in Peru.


A lot has to be done in these communities, as according to Pedrasa every month 45-50 persons leave Pacobamba to find their happiness elsewhere. In a way the situation was clear when we arrived in Huancarama: little children were shitting near the road. The guest house where we were staying did not have a shower and only a tap with cold water in the patio. No toilet paper and soap to be found. Neither in the restaurants. Luckily you could by it in the little shops. Basic hygiene, education and health care is essential. People should take better care of themselves. With introduction of some new crops that make more money and cooperation on further processed products (fair trade) the people in this area should get a higher income. The present way of living is not really suitable for the 21st century.

Orphanage Santa Maria is a home for 130 boys

Lima � 24 February 2009 � Today I visited with a friend the orphanage Santa Maria in San Juan de Miraflores, a poor area in the south west part of the city. The orphanage is a private initiative of an American and his Peruvian wife. They started this orphanage 20 years ago and at the moment it has around 130 boys in the age of 6 till 18. The government gave them the land, which was at that time desert. Now it is a quiet oasis in a see of little houses.

The last years 30 till 40 new kids arrive each year, in the past this number was around 15. This shows that at least for this orphanage the growth of the economy does not really results in a better position for the most poor in the country. Although it�s just one example. The children have to be 6 years old to be accepted, because there are no facilities for younger kids. Last year an exception was made for a disabled boy of 4 years old, because no other institution wanted to have him. Two thirds of the children is brought by a relative, either a father or mother or an aunt or grandmother. Their families are too poor to take care of them themselves. The other third of the children has no relatives at all, they don�t even know their names when they arrive.

For the management it�s quite a challenge to teach the children order, discipline and a feeling of being at home. Because this is what matters at Santa Maria. The children get up at half past six. At seven they have breakfast and after that they go to school, which in Peru is from eight till one. Neatly dressed in their uniforms. After that they come home, have lunch and do their chores. Every boy has his own chore; this can be feeding the animals, cleaning the room or folding the laundry. They all fulfill a necessary role. At 4 o�clock it�s time for homework. After that dinner. The youngest boys (6-9 years old) go to bed at seven. For the eldest the light goes out at ten. This is the weekly program. Saturday they have more chores, can watch tv and go to mass. On Sunday the ones who have relatives visit those, the others are free to play, watch tv etc. The management consists of three men in their twenties, early thirties. They aim to create an attentive atmosphere, not too distant.

The donations form the income of the orphanage. Only the school uniforms and school expenses cost each year 15.000 soles (ca. 5.000 dollar). They collect second hand clothes. An NGO or private person finances a school room with computers or a kitchen. The older kids and the boys that leave the orphanage work in so called traperia, where old stuff is being recycled. The income is for the orphanage. This pays the daily expenses on food etc. The dormitories should be rebuilt as they have no fundaments, but for the moment there is no money for that.





It is rather touching, to be showed around the area and visit the dormitories, washing rooms, school rooms, housing of the animals and feel a warm little hand wanting to hold yours. Some children don�t want to leave the orphanage when they�ve turned 18. This is all they know and where they are secure. But they have to lead their own life, to find work, get married and have families of their own. Hopefully their situation is better than that of their parents, so their children don�t have to go to an orphanage.

New Years Eve with Grupo 5 in Los Olivos

Lima - 1 January 2009 � Last year we spent New Years Eve in the last remaing villa (Victor Delfins studio) along the ocean side in Barranco. So this year we went to another part of Lima: Los Olivos. This is a district in the north of the city and is the centre of the so called Cono Norte, the former slums built in the 60-ies and 70-ies by the migrants from the Andes and that form now the buzzing heart of Lima Emergente.

In the estadio Guadalupano in Los Olivos Grupo 5, the most popular Peruvian cumbia band, organised a new years eve party. To get there we took at nine o�clock a ramshackle micro bus from Miraflores to the centre of Lima. There we boarded an even older bigger bus bound to the north of the city. At Plaza Vea in Independencia we took a taxi for the last part of the journey and arrived half past ten. De stadium was already half full and as a warm up a local boy band was playing.

At half past eleven the guys from Grupo 5 came on stage. Dressed in their customary suits. They played all the famous songs. Cumbia is the Peruvian popular music, where there is a lot of crying (llorando) and suffering(sufriendo) in the songs with an uptempo beat based on percussion, trumpets, trombones and drums. Cumbia origines at the Colombian atlantic coast as a fusion of Spanish and African elements. Originally it had only percussion and song. The chicha culture of the migrants in the Peruvian slums added trumpets, trombones and keyboards.

Grupo 5 exists 35 years and is based in Chiclayo in the north of Peru. Since their start a new generation has formed part of the group. Around twelve o�clock the stadium was completely full with several thousand people. Dancing and drinking beer (no other drink was available). At 2 o�clock we left. The most important cumbia hits of the past year are: Grupo 5 with Me olvid� de tu amor, Hermanos Yaipen with A llorar a otra parte, Orquestra Papillon from Tarapoto with the present number one El Payaso and Ca�a Brava with Sue�o.

The youtubelinks::
http://nl.youtube.com/watch?v=WgcbEu2b0Uo
http://nl.youtube.com/watch?v=qu7pmeH9b6c
http://nl.youtube.com/watch?v=wfqjaC10WeE
http://nl.youtube.com/watch?v=OUsjlaDxLn0

First Peruvian Feria Gastronomica big success

Lima � 28 September 2008 - Today ended the three day Feria Internacional Gastron�mica de Lima under the name Per� Mucho Gusto. Approximately 25.000 people visited this gastronomy spectacle in the Cuartel San Mart�n in the district of Miraflores in the Peruvian capital. As the days before, this day showed long queues in the nearby streets.

With this event and of course her cuisine Peru is lining up with gastronomical heavy weights as Italy, France and China. According to Spanish chef Bruno Oteiza, whose Mexican restaurant Biko is number 89 on the San Pellegrino top 100 of best restaurants in the world, this event can be compared to the Salone del Gusto of Slowfood in Turin. According to him the most distinctive elements in the Peruvian cuisine are the freshness and originality of the ingredients. He names corn (choclo) and the wide variety of potatoes in Peru as the most important products. Gast�n Acurio, the most famous Peruvian chef, thinks however that aji (peppers) are the most characteristic element in the Peruvian cuisine.

The word most appropriate for Peruvian food is fusion. The traditional Peruvian food developed in the sixteenth and seventeenth century by mixing native products � potatoes, aji, corn � with products that were introduced by the Spaniards, like beef and milk. A well known creole dish is for instance papa a la huanca�na (cooked yellow potatoes with a sauce of aji amarillo, fresh cheese, oil and evaporated milk). The African slaves had influence on the cuisine as well, especially in the region around Chincha, as had the Chinese, who arrived in the nineteenth century. A typical black dish is anticucho (fried heart). In lomo saltado (fried beef, onions and tomatoe with fried potatoes and rice) you can recognise the Chinese stirfrying influence.

The last decades Peruvian food has undergone a development that made it rise above being a combination of folkloristic dishes. Orginal products and recipes were prepared in a new way, often in combination with other national products, for instance from the Amazon jungle. This makes it a real cuisine. Every region has its specialities, but Lima has become the capital of the Peruvian cuisine, with many toprestaurants. Nowadays those restaurants are looking for expansion outside Peru.

Back to the feria. This consisted of a central square where several Limenian restuarants presented themselves. Grouped around them were stands with traditional dishes, like antichuco and cebiche. Behind then was a big hall with products from all regions of Peru, with ample opportunity to try and taste everything. During these three days there where several congresses and and a competion among young chefs.

All Souls in San Juan de Lurigancho

Lima - 2 November 2008 � San Juan de Lurigancho, in the north east of Lima, is the most densely populated district of Lima and of Peru with more than 1 million inhabitants living on 131 square kilometers. All Souls and All Saints are celebrated extensively in Peru. Most Peruvians visit cemeteries to spend these days with their deceased relatives.

There is a big difference between the official cemeteries and the illegal ones. In the inofficial ones you can drink beer, eat, make music etc. Bands of musicians go around and play on request the favorite songs of the deceased person. In the offical ones it�s a bit more quiet. At the moment El Sauce is being transformed into an official cemetery. Three brothers were sitting near the graves of their parents drinking beer and commemorating. They told that here it was rather quiet, in the villages in the Andes people would bring food and everybody would share.

In the 20-ies the first persons were buried at El Sauce, when this area was part of a hacienda of the Nicolini family. These were workers of the hacienda. The growing immigration of people of the countryside to Lima, not only resulted in a dense population in San Juan de Lurigancho, but as well to a very populated cemetery. From a far you can see the signs, as many little shops are located in the vicinity, catering to the visitors.

Casa Aliaga gives a glimpse of 18th century Lima

Lima - 17 January 2009 - Casa Aliaga is the only colonial house in the centre of Lima that has been occupied without interruptions by the same family since the foundation of Lima as capital of the Spanish colony in 1535. The builder and first owner was conquistador Jer�nimo de Aliaga (1508-1569), a companion of Pizarro. The house and the family have survived earthquakes, uprisings, invasions, military dictatorships, terrorism and consumerism.

It is the only house in the old centre that gives an idea how Lima has been in the 18th and 19th century, when it was a stylish aristocratic centre. All other members of the elite abandoned the centre of Lima in the 60-ies and and 70-ies and let it grow dilapidated and almost collapse, while they found safe havens behind high walls in Miraflores, San Isidro and La Molina. The house is situated in Jir�n de la Uni�n opposite the presidential palace, the former residence of the Viceroys of Peru. It is built on the remains of a huaca (temple), as are all the other important buildings from the beginnings of the colonial period, as the cathedral, presidential palace etc. When the Spanish made Lima, or Ciudad de los Reyes as their capital on January 18th 1535, it was already occupied. The curaca (chief) during the last Incas was Tauli Chusco. Pizarro gave part of his land to Jer�nimo de Aliaga. The house was built there. The basement used to be connected by corridors to the viceroyal palace and the church of San Domingo.

Like everything else in Lima, Casa Aliaga was almost completely destroyed during the earthquake of 1740, only the chapel survived. The chapel is therefore one of the few sixteenth century remains in Lima. The walls of Casa Aliaga are made of quincha; a mat of bamboo covered in a mixture of mud, eggshells and faeces, resulting in a rather flexible earthquake resistant structure. Even large buildings as the basilica of San Francisco are partially made of quincha. During the Chilean occupation of Lima 1879-1882 the chapel was stripped of all its silver.

The present occupier of Casa Aliaga is Gonzalo de Aliaga Ascenzo, eight count of San Juan de Lurigancho. Since 1958 the family uses � with permission of the Spanish King � the old noble titles. He is married with Ana Mar�a Arrarte Fiedler, sister of Carlo Alberto, owner of Lima Tours, and Eduardo, vice-minister of tourism. Gonzalo is the seventeenth generation Aliaga who lives in the house. The second son of conquistador Jer�nimo de Aliaga, also named Jer�nimo was the first owner of the so called Mayorazgo de Aliaga. His daughter Juana inherited his possessions. Her son Jer�nimo took the name Aliaga, but died without heirs in the beginning of the seventeenth century. His sister Ventura then became owner. She married a descendant of the eldest son of the conquistador, although as well in the female line, but with the surname Aliaga. Their descendants are still living in the house. One of the most important figures in de Limenian society in the eighteenth century was Sebastian de Aliaga y Colmenares. He inherited the title Marqu�s de Zelada de la Fuente and married in 1779 Do�a Maria Mercedes de Santa Cruz y Querejazu, 4.Condesa de San Juan de Lurigancho. With the coming of the republic the noble titles were abolished in 1823.

Commerce triggered first city of the Americas Caral

Lima - 20 January 2009 � With an estimated age of 5,000 years Caral is the oldest city of the Americas. Caral is located 200 kilometer north of Lima in the valley of the river Supe. In this valley more archeological sites from the same period have been discovered. Caral dates more or less from the same period as the pyramids of Gizeh in Egypt. Caral has eight pyramids, of which three have a circular area in front. The city had several residential areas as well.

Caral was discovered in 1948, but got little attention, because no spectacular things were found in the soil. Archeologist Ruth Shady did since 1994 more fundamental research and discovered that the hills in the area were hiding real pyramids. Pyramids almost as old as those in Egypt.

Caral dates from the Late Archaic period, in which there were no ceramics. No shard has thus been found in Caral. No weapons either. Archeologists are having a discussion whether urbanization was triggered by conflict or commerce. In Caral many remains of fish (especially anchovy and sardines) and shells were found, as were remains of textiles made of cotton and cottonseeds. Caral is not close to the coast. In this fertile river valley cotton was produced. Cotton of which fishing nets were made. They were probably traded for fish. The discovery of Caral is an important argument pro urbanization caused by commerce.

The antiquity of Caral could be estimated because of stones held together by nets of rope that were used as filling material in the construction of the pyramids. Another clue was the body of a man of approx. 23-24 years old that was found in a wall of the Great Pyramid. He was probably sacrificed, as his scull had received three blows and his hands were tied behind his back. With this scull a reconstruction was made of the face of an inhabitant of Caral. A person who lived 5,000 years ago now has a face. His skeleton showed severe signs of wear. Probably he belonged to the lower working class that built the pyramids. In its hey days Caral had 3,000 inhabitants. Part of the city contained the big houses of the elite, other parts the small houses of the working class.

So far in total only five skeletons have been found in Caral. No cemeteries have been discovered. However 32 flutes made of bones of condors and pelicans and 35 horns of cameloids have been found. They were probably used to make music during religious festivities. Statuettes have been found as well. Unbaked as no one had thought of making ceramics yet. No iron or other metal instruments were used. The stones with which the pyramids and houses were built were natural. Only forms of animals and geometrical shapes have been carved in some stones.

Caral was inhabited from 2,600 till 2,000 before Christ. After that the city was abandoned. Maybe this was caused by draughts. No one ever lived again in this place, although the nearby river valley was later inhabited by the Chavin culture, the Chancay and the Incas. It seems they respected this first civilization in the Americas and left Caral untouched.

Spring initiated with pre Inca ritual

Lima - 20 September 2008 � Today spring was initiated in the huaca (temple) Paraiso with rituals dating from the times of the Incas and earlier. The huaca Paraiso in the north of Lima, in the valley of the river Chill�n, is one of the oldest in Peru and dates from the year 2000 before Christ.

The spring equinox on the southern hemisphere takes place on September 20th. This is the day for the celebration called Qapaq Warmi Kuraq Raymi or Qoya Raymi Killa, where the rituals focus on spiritual cleansing, a �fresh� start of the new year and personal renovation. At the same time this a moment for initiation rituals for girls to become women. The girls that participate state that they are not ashamed for these rituals but that they�re proud of their own culture.

Residential market in Lima is still going strong

Lima � October 2008 � While walking around in Miraflores and other central districts in Lima you see everywhere new apartment buildings under construction. And all advertise: sold completely or last apartments available. Especially the first nine months of this year the prices for houses have increased dramatically. As if no credit crisis exists. And you wonder: who is buying all these apartments and where is the money coming from? In the light of the most recent global financial developments one would expect that the market here will be influenced as well, although the Peruvian real estate sector has some specific characteristics.

The number of recorded housing units being built increased from 1,9 million square meter in 2003 to 3,6 million square meter in 2007, an increase with 67%. And this is only what is officially registered by the C�mara Peruana de la Construcci�n (Capeco) and amounts probably to 30% of the total construction. Another 70% could be built by families themselves and private companies without building permits. This percentage is based on the total domestic cement consumption in Per�. It is not only because the informal economy is very large and no title deeds exist for the properties, but also because until recently it took 320 days to obtain a building permit, having to visit the same authority no less than six times. Now this last period has been shortened for private houses to five days. There is a big demand for housing, made possible by the increase of income due to the growth of the Peruvian economy and by the availability of more credit.

Demographically Per� has changed enormously. In 1961 the country had 10 million inhabitants of which 1.8 lived in Lima (18%). The last census of 2007 shows that Lima Metropolitana has a population of 8.5 million on a total of 27.4 million (31%). During these last 40 years millions of people have come from the countryside to Lima looking for a better life, safety from earthquakes and the terrorism of Shining Path in the 80-ies and 90-ies. Lima has been transformed in this period: extensive areas have been built to form the so called conos (Cono Norte with Independencia, Comas, Los Olivos and Cono Sur with Villa El Salvador and Santa Mar�a) or Lima Emergente which houses more than 5 million of Lima�s inhabitants. Lima Tradicional (Central, Magdalena, Miraflores, San Isidro, Surco, Barranco, La Molina) houses more than 3 million. Especially Lima Norte is bustling with energy and many businesses have been founded. Probably they have become part of the formal economy as well. The people are prospering more and want a better life, so they move to the better parts of the area, or to Lima Tradicional, especially Miraflores.

The Peruvian economy grew by more than 4% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to 7.5% in 2007 � the highest in Latin America - driven by higher world prices for minerals and metals. Despite the strong macroeconomic performance, underemployment and poverty have stayed however persistently high. The GDP based on purchasing power parity increased from 127 in 2000 to 239 in 2008. According to consultant Ipsos Apoyo in the last four years the average family income increased with 40% in nominal terms, from 430 USD in 2003 to 600 USD in 2007. BBVA Banco Continental states that 20% of the houses are being paid in cash and 80% by mortgages. The 70% houses built in the informal sector are paid in cash or with consumer credits.

Credit in general has become much more available; for buying a house or for buying consumption goods. The mortgage loans increased from 1.1 billion USD in 2002 to 2.9 billion USD in 2007. An important stimulus to the residential market was given by the government with the MiVivienda program in 1998 with 500 million USD which gave mortgage loans on less strict terms than usual to middle income families. This program was so successful that it got exhausted in 2006. Seeing the interest and the fact that people paid back their mortgages made the private banks step in and start to supply easier credits for buying properties. The largest supplier of mortgage loans is Banco de Cr�dito BCP with a market share of 39%. Mortgages in general are taken for 12 years for an average amount of 45,000 USD. The government started in 2007 a program called Mi Hogar for low-income families to fund mortgages between 31,000 and 78,000 soles (ca 10,000 and 27,000 USD).

The impact of the credit crisis on Per� and the rest of Latin America is unclear at the moment. Per� has a very low mortgage penetration with 2.8% of GDP. In developed countries it is 57% (USA 80%) and in countries in the region like Mexico and Chile, 15% and 11% respectively. So far in general the economy is doing well, although in some sectors like textiles the exports have dropped as US companies are keeping less stock because of the recession. Peruvian workers have returned from the US as well. On the other hand the domestic consumption is performing well. The steep price increase of houses will however probably not continue.

Massive investment in Peruvian shopping centers

Lima - October 2008 - The next two years 800 million dollar will be invested in new Peruvian shopping centers according to Banco Continental BBVA as a result of the growing prosperity due to favorable political and economic conditions the last years. Of all the countries in Latin America, Per� has the lowest penetration of modern retailing, which gives great opportunities to increase retail space. Originally only in Lima, but now in the provinces as well.

The Peruvian economy grew by more than 4% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to 7.5% in 2007 � the highest in Latin America - driven by higher world prices for minerals and metals. Despite the strong macroeconomic performance, underemployment and poverty have stayed however persistently high. Growth prospects depend on exports of minerals, textiles, and agricultural products, and by expectations for the Camisea natural gas megaproject and for other promising energy projects. The stock exchange was in 2006 and 2007 one of the fastest growing in the world. By the end of 2007 and continuing into 2008 the Bolsa started to fall and inflation started to rise, due to increased oil and commodity prices.

Demographically Per� has changed enormously. In 1961 de country had 10 million inhabitants of which 1.8 lived in Lima (18%). The last census of 2007 shows that Lima Metropolitana has a population of 8.5 million on a total of 27.4 million (31%). During these last 40 years millions of people have come from the countryside to Lima looking for a better life, safety from earthquakes and the terrorism of Shining Path in the 80-ies and 90-ies. Lima has been transformed in this period: extensive areas have been built to form the so called conos (Cono Norte with Independencia, Comas, Los Olivos and Cono Sur with Villa El Salvador and Santa Mar�a) or Lima Emergente which houses more than 5 million of Lima�s inhabitants. Lima Tradicional (Central, Magdalena, Miraflores, San Isidro, Surco, Barranco, La Molina) houses more than 3 million.
The GDP based on purchasing power parity increased from 127 in 2000 to 239 in 2008. This increase in purchasing power is a consequence of political and economic stability and of course the hard work of a large part of the population. The son of a peasant who migrated to Lima in the 60-ies was a taxidriver or owner of a small shop, but the grandson could now be a graduated engineer. The emerging zones are bustling with energy and small businesses. Credit has become much more available; for buying a house or for buying consumption goods. The MiVivienda program of the government played an important role as did the introduction of credit cards by leading retailers. The increase of the income for a large part of the urban population makes it possible for people to have a better life. This is reflected in the construction activities and related matters as do-it-yourself stores.

Traditional sales channels; grocery retailers and marketplaces, are the main sales distribution channels in the Peruvian market, due to their proximity to the population and their distribution at a domestic level. Supermarkets and hypermarkets are increasing their reach in Lima�s developing zones and in the provinces of Peru. In 2007 the retail sales through shopping centers amounted to 1.6 billion dollar, against 1.2 billion in 2006. Still in Lima this accounts for only 10% of total retail sales. For 2008 sales of 2.2 billion dollar are expected by the organization of shopping centers ACCEP. The growth of the Peruvian retail sector also attracts foreign companies: Dutch wholesale retailer Makro plans to open 15 stores, of which the first one will be opened in Lima in 2009.

The number of commercial centers is increasing at an unbelievable speed with Lima as the centre of most of the activity, although in the last years the other cities are being targeted as well. In 2009 and 2010 more than 800 million dollar will be invested in 26 new shopping centers according to bank BBVA: 210 million dollar in Lima Tradicional, 290 million dollar in Lima Emergente and 320 million dollar in the rest of the country. Compared with other Latin American countries Per� has the lowest penetration of modern retailing.

At the moment the three main shopping centers based on turnover are Jockey Plaza, Plaza San Miguel and Megaplaza Norte in Lima. Jockey Plaza expects total sales in 2008 to be 500 million dollars, with monthly 3 million visitors. In general a department store, hypermarket and a do-it-yourself store are the anchors for the shopping centers. The main department stores are Ripley and Saga Falabella. Both owned by Chilean companies. Hypermarkets from top to bottom-end: Wong (bought in 2007 by Chilean Cencosud), Vivanda (Supermercados Peruanos/Interbank), Metro (Cencosud), Tottus (Falabella) and Plaza Vea (Supermercados Peruanos/Interbank, 1999-2003 owned by the Dutch Ahold group). And DIY: Sodimac (bought in 2003 by Falabella) and Maestro Ace Home Center (member of Ace Hardeware Corporation in US).

The main developers of shopping centers are Chilean and connected to the above mentioned companies. Malls Per� - a subsidiary of Falabella - builds and operates the shopping and power centers of this group under the brand Open Plaza and is very active in the provinces. Chilean real estate developer and manager Parque Arauco SA � founded by Jos� Said Saffie a grandson of Isa Said who emigrated from Jerusalem to Per� in the early twentieth century � operates Mega Plaza Norte (45%) and Plaza Lima Sur and is planning Parque El Golf in San Isidro. The other 55% of Mega Plaza Norte is owned by Peruvian Grupo Wiese. Mall Aventuro Plaza is a subsidiary of Chilean shopping center operator Mall Plaza. Peruvian Interbank develops through it�s subsidiary Interseguro shopping centers under the name Real Plaza, mainly in the provinces.

Lima Tradicional
High street shopping does not exist anymore in Lima. In the 19th and first half of the 20th century Lima was one of the most elegant cities of South America. You could stroll through the parks in the center of the town, have an ice cream there and later tea in one of the big hotels. The Plaza de Armas and Plaza San Mart�n were the places to be, connected by the Jir�n de La Uni�n, with shops in fashionable art deco style. Those days are past. With the economy turning for the worse, the influx of migrants and the advance of terrorism the elite evacuated the center of town and moved to Miraflores and San Isidro and later to La Molina to live a safe life of luxury behind high walls keeping the undesired elements out.

Nowadays you can find the designer outlets in the commercial centers El Polo in La Molina and Jockey Plaza in neighbouring Surco. Jockey Plaza, the most important Peruvian mall and built in 1997, is owned by Chilean bankers Grupo Altas Cumbres. Turnover was in 2007 410 million dollars and is expected to be 500 million dollars in 2008. The next three years the mall will be doubled in floor space: from 70,000 sq m to 140,000 sq m, to facilitate the housing of department store Paris (Cencosud), La+Polar, Sodimac and Tottus. A total investment of 100 million dollar.
Monterrico Plaza of Peruvian Grupo Brescia with an area of 85,000 sq m near La Molina will be finished in 2008. An investment of 30 million dollar.

Parque Arauco penetrates the core of traditional Lima with it�s project Parque El Golf in exclusive neighbourhood San Isidro. A shopping center with 13,000 sq m will be part of mixed-use project with two office towers and a 5-star hotel. Total investment 100 million dollar.
Interseguro (Interbank) is building shopping center Centro Civico near the new underground bus station. This center will open in 2009.

Lima Emergente
After the huge success of Mega Plaza Norte in Independencia, which opened in 2002 (investment 40 million dollar) and Plaza Lima Sur in Chorrillos, which opened in 2005 (investment 35 million dollar), Parque Arauco is rumored to be planning Mega Plaza Este in Santa Anita and Mega Plaza Sur in Villa Mar�a del Triunfo for a total investment of 80 million dollar. According to Percy Vig�l Vidal general manager of Mega Plaza Norte, this has to be seen, for the moment only the land has been bought in Santa Anita and there is no plan yet for another center in Lima Sur. Mega Plaza Norte has been enlarged from 96,000 sq m to 138,000 sq m and the focus of the company is for the moment on this center. Turnover in 2007 amounted to 270 million dollar. The center serves an area with a radius of 25-30 minutes by car comprising of 2 million inhabitants. Per month 3 million people visit Mega Plaza Norte, according to Vig�l this is 35-40% of the population. The most popular items are clothes and footwear. When asked what the difference is between the customers in Lima Emergente and Lima Tradicional Vig�l responds that the customers here are much more participatory. There are music contests and every weekend the center hosts live music and other events. A customer from Jockey Plaza would find it here much too noisy. On the other hand the center also organizes ballet performances, as there is no theatre in the vicinity.

Malls Per� operates two power centers in Lima Emergente; Open Plaza San Miguel and Open Plaza Atocongo in San Juan de Miraflores, which was built with an investment of 25 million dollar in 2006. Malls Per� enlarges Open Plaza Atocongo. Malls Per� formed in November 2007 a joint venture with Padabest, subsidiary of Ripley, and Chilean Mall Plaza under the name Inversiones Corporativas Alfa to build 3 shopping centers for 138 million dollar in Callao, Santa Anita and Trujillo. This is seen as a reaction against the take-over of Grupo Wong by Cencosud and possible further expansion of Cencosud in Per�. Power centers have just two or three big stores; a department store, hypermarket and DIY and no additional small stores and food courts as the traditional shopping centers.

Mall Aventuro Plaza plans to build shopping centers in Callao-Bellavista, which will be finished in September 2008, and Santa Anita, which will be finished in the first semester of 2009. Total investment 65 million dollar.

Grupo Torvisco is at the moment constructing a mall under the name Imperio in Puente Piedra. Which will house their own supermarket brand Uniko. 33 year old director Nemecio Torvisco Palomino stated that the company already owns land that could be used for the construction of three more shopping centers in Lima. The story of Nemecio Torvisco is a success story: he was born in Abancay in the central Andes, but his family moved to La Agustina, where he started to work as a carpenter when he was 14 years old. With his brothers he started a small paint factory in 1991, which now has 280 employees.