Up to US$500M to be invested by way of MIRA, a fully-integrated urban mixed-use community development platform
More than US$100M invested in first project in Mexico City
MONTREAL, Oct. 8, 2014 /CNW Telbec/ - Ivanhoé Cambridge announced today the creation of a new partnership with Black Creek Group (Black Creek), a real estate private equity firm with extensive experience sponsoring real estate companies in Mexico. Ivanhoé Cambridge, together with Black Creek, will invest in the development of mixed-use urban communities in the main cities of Mexico including, but not limited to, Mexico City, Monterrey and Guadalajara by way of MIRA, a fully-integrated real estate development platform. Ivanhoé Cambridge intends to invest up to US$500 million in assets.
Ivanhoé Cambridge's first investment by way of MIRA of more than US$100 million in assets will be used for a residential development project located in the Mexico City borough of Cuajimalpa, adjacent to the Santa Fe business district. The project consists of two residential condominium buildings with approximately 500,000 ft2 (46,500 m2) of net saleable area comprising 479 residential units.
"With this investment, Ivanhoé 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," explained Rita-Rose Gagné, Executive Vice President, Growth Markets, for Ivanhoé Cambridge. "The investment is part of Ivanhoé 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."
Jim Mulvihill, Founding Partner of Black Creek Group, said: "Our venture with Ivanhoé Cambridge underscores the tremendous investment opportunities in Mexico and the strength and potential of MIRA's platform. We look forward to working with Ivanhoé Cambridge and continuing to develop world-class urban communities in Mexico."
Jaguar Growth Partners acted as advisor to Ivanhoé Cambridge on this transaction and FTI Consulting on the financial aspects of the investment.
About Ivanhoé Cambridge
Ivanhoé Cambridge is a world-class real estate company that leverages its high-level expertise in all aspects of real estate including investment, development, asset management, leasing and operations, to deliver optimal returns for its investors. Its assets, held through multiple subsidiaries and located mainly in Canada, the United States, Europe, Brazil and Asia, totalled more than Cdn$40 billion as at December 31, 2013. Its portfolio consists mainly of shopping centres, office and multiresidential properties. Ivanhoé Cambridge is a real estate subsidiary of the Caisse de dépôt et placement du Québec (lacaisse.com), one of Canada's leading institutional fund managers.
MIRA Companies, founded by Black Creek Group in 2007, is a fully integrated real estate investment and development platform focused on commercial and residential assets in Mexico. It currently develops master-planned mixed-use residential communities and large-scale mixed-use urban infill communities targeting Mexico's expanding middle-class population. Projects include town centres with residential, office and retail components.
About Black Creek Group
Black Creek, founded in 1993, is a broad-based institutional real estate firm headquartered in Denver, Colorado. Black Creek has a 17-year track record in Mexico with approximately US$2.1 billion invested in industrial, retail, residential and infrastructure assets through five Mexican real estate platform companies. One of the most experienced real estate developers in Mexico, Black Creek has been active in over 30 Mexican cities backed by approximately US$2.5 billion of institutional capital.
Image with caption: "Ivanhoé Cambridge to make its first direct investment in Mexico through new partnership with Black Creek Group (CNW Group/Ivanhoé Cambridge)". Image available at: http://photos.newswire.ca/images/download/20141008_C1021_PHOTO_EN_6459.jpg
SOURCE: Ivanhoé Cambridge