CCLA Group, a partnership between CIM Group and Compass Group, has created a $300 million joint venture with Singapore sovereign wealth fund GIC to invest in for-rent multifamily assets in Mexico.

“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, in a statement. “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 multifamily 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 comprising approximately 250 to 400 rental uni