Mexican developer secures $ 313 million for investment vehicle


Gran Ciudad Nuevo Sur, a community in Monterrey, Mexico. Image courtesy of the Gran Ciudad Group

Gran Ciudad Group, a Mexico-based multi-family rental property developer, owner and operator and a private subsidiary of the Black Creek Group, has formed an institutional real estate investment vehicle to further expand its real estate portfolio. The company has secured $ 313 million in equity commitments from Canadian investor Ivanhoé Cambridge and Mexican pension fund manager Citibanamex Afore.

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The investment management company Black Creek Mexico organized the new investment vehicle on behalf of Gran Ciudad. The company plans to use the vehicle to purchase and develop a portfolio of institutional grade rental properties in major cities in Mexico, including the Mexico City metropolitan area, Monterrey, Guadalajara and Querétaro.

The multi-family rental housing market in Mexico is an emerging industry that Gran Ciudad and its investors are confident for the future, with the market experiencing favorable demographic fundamentals, Gran Ciudad said in its announcement.

Ivanhoé Cambridge had already partnered with Black Creek Mexico in a $ 500 million investment in mixed-use development projects in major cities in Mexico in 2014. In 2017, Ivanhoé Cambridge joined APG Asset Management, GIC and Greystar in a fund that has acquired the owner and developer of multi-family buildings. Monogram Residential for $ 3 billion.

Last fall, thousands of miles across the globe, a joint venture between CBRE Global Investment Partners and Madison International Realty acquired a portfolio of 6,458 residential rental units valued at $ 1 billion in Madrid and other major cities. Spanish cities.


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