Sam Zell’s investment firm Equity International (EI), Goldman Sachs Merchant Banking Division (GS MBD) and Centaurus Capital (CP), in partnership with Grupo Pegasus, have plans to invest more than $300 million in Argentine real estate.
The investment will be made through ARG Realty Group (ARG), a commercial real estate company based in Buenos Aires, Argentina. The transaction included the acquisition of Pegasus Real Estate Fund´s 1 million-square-foot class A office and retail real estate portfolio. ARG now represents one of the largest real estate platforms in Argentina and is being led by the management team that developed and managed the portfolio.
“Limited investment in Argentine commercial real estate over the past 15 years has resulted in significant undersupply,” said Tom Heneghan, CEO of Equity International. “We’ve been watching the market for years, waiting for the tipping point, and believe that we are now at the onset of increasing demand. Further, we have identified an exceptional local partner and look forward to working alongside them to build upon their strong track record and execution capability. We believe that the recent reforms and efforts to strengthen the economy by the government will spur additional investment in Argentina in the coming years.”
ARG will focus on income-producing real estate properties in Argentina, including investments in Buenos Aires office and retail assets.
