Investors - FEBRUARY 28, 2018

GIC enters $300m Latin American JV

by Andrea Zander

CCLA, a partnership between CIM Group and Compass Group, has created a $300 million joint venture with Singapore sovereign wealth fund GIC.

CCLA develops, owns, and operates well-amenitized multifamily residential for-rent assets including mixed-use real estate assets in Mexico and Latin America.

“As a long-term value investor, we are attracted by the sustainable risk-adjusted returns of purpose-built apartments,” said Lee Kok Sun, CIO of GIC Real Estate. “This asset class provides a compelling option for a large and growing population of renters within our target income and geographic segments. Given current and expected demographic trends, we believe this asset class in Mexico will follow the same trajectory as in the United States.”

The new venture with GIC will develop and operate purpose-built, for-rent multi-family buildings across Mexico’s largest cities including Mexico City, Guadalajara and Monterrey. The joint venture aims to develop a portfolio of mid- to high-rise buildings, with each comprised of approximately 250 to 400 rental units. CCLA will develop and operate the buildings.

GIC has been actively increasing its international exposure, starting the year strong by purchasing a student housing portfolio in Germany and a majority stake in French hotel company AccorHotels’ real estate arm, AccorInvest, for €4.4 billion ($5.4 billion).

In addition, GIC recently formed an $800 million North American data center joint venture and a $550 million U.S. multifamily joint venture.

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