Caisse de depot et placement du Quebec, the entity that manages Quebec’s public pension assets, has unveiled plans to invest up to $500 million in residential and urban housing projects in Mexico.
First up: a $100 million investment in two yet-unbuilt condo complexes.
From the Yucatan Times:
Ivanhoe Cambridge, the real estate unit of the Caisse de depot et placement du Quebec, a public pension funds manager, is teaming up with United States-based Black Creek Group with an investment of up to US $500 million.
Its first project, reported to be its first foray into Mexico, will be a residential development in the borough of Cuajimalpa in Mexico City consisting of two residential condominium buildings with 479 units in total.
It will invest $100 million in the 46,500-square-meter project.
Black Creek is a private-equity firm and real estate company with 17 years’ experience in Mexico in building infrastructure, retail and residential developments, targeting low and middle-income Mexican families. Another market is second homes for American and Canadian baby-boomers.
“With this investment, Ivanhoe Cambridge is setting a major foothold in Mexico, which will provide excellent access to opportunities, including long-term investments in a portfolio of high-quality assets,” said Rita-Rose Gagne, an executive vice-president with Ivanhoe Cambridge.
“The investment is part of Ivanhoe Cambridge’s strategy of developing a long-term, active presence in growth markets. The economic growth and demographic trends in Mexico are producing a large and sustained local demand for commercial and residential real estate.”
Caisse de depot et placement du Quebec manages around $180 billion (USD) of assets.