Paladin Realty Partners launches Latin America impact fund
Paladin Realty Partners, a private equity fund manager focused on institutional-quality real estate investments in Latin America, has launched a new real estate impact fund.
The firm is seeking to raise $50 million to $100 million for the fund, which will co-invest in a particular component of Paladin’s Latin America strategy, which includes affordable, green housing targeting the region’s growing demand among low-income homebuyers. The target markets are Brazil, Mexico, Peru and Colombia, all countries where Paladin has previously been active.
Employing a hybrid allocator/operator investment approach, Paladin Realty Partners invests opportunistically across a range of product types, including for-sale residential, apartments, student housing, office, industrial, lodging and land developments. The firm has marketed five prior pan-regional funds to date that have invested in more than 170 assets totaling $4 billion of projected total cost and over 20 million square feet of space in seven countries.
In addition to the developmental impact of providing badly needed low-income housing, the fund will utilize internationally-recognized ESG best practices, for example, >20 percent energy savings through IFC EDGE Certification, Life & Fire Safety Master Plan based on IFC Standard 3.3, Master Human Resources Policy, Grievance Mechanism Policy, etc., policies that Paladin has implemented with its prior funds over the past decade.
One of Paladin’s flagship investments is its Villas del Fresno project in Mexico City. The flagship was recently certified by the IFC’s Excellence In Design for Greater Efficiencies program, making it the largest such residential project in the Western Hemisphere, both in terms of number of units and buildable area.
The firm also opened its fourth Latin America office in Lima, Peru, in March. The office is headed by Andrés Bautista, investment director, under the direction of Alejandro Krell, managing director in charge of the Andean Region.
