Mexican Developer Secures $313M for Investment Vehicle

Gran Ciudad Group will expand its multifamily rental portfolio with equity commitments from Canadian investor Ivanhoé Cambridge and pension fund manager Citibanamex Afore.
Gran Ciudad Nuevo Sur, a community in Monterrey, Mexico. Image courtesy of Gran Ciudad Group

Gran Ciudad Group, a Mexico City-based developer, owner and operator of multifamily rental properties throughout Mexico and a privately-held affiliate of the Black Creek Group, has formed an institutional real estate investment vehicle to further expand its property 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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Investment management firm Black Creek Mexico arranged the new investment vehicle on behalf of Gran Ciudad. The firm plans to use the vehicle to buy and develop a portfolio of institutional-quality rental properties in major cities of Mexico, including the metro Mexico City area, Monterrey, Guadalajara and Queretaro.  

The multifamily rental housing market in Mexico is a nascent industry that Gran Ciudad and its investors are confident about going forward, with the market experiencing favorable demographic fundamentals, Gran Ciudad said in their announcement.

Ivanhoé Cambridge previously partnered with Black Creek Mexico in a $500 million investment in mixed-use development projects in major cities of Mexico back in 2014. In 2017, Ivanhoé Cambridge joined APG Asset Management, GIC and Greystar in a fund that acquired multifamily owner and developer 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 6,458-unit portfolio of residential rental properties valued at $1 billion in Madrid and other major Spanish cities.