Ivanhoé Cambridge is going direct in Mexico, and has formed a new partnership with Black Creek Group, a Denver-based real estate private equity firm focused on property investments in the US and Mexico. The joint venture represents the first direct deal in the Latin American country for Ivanhoé Cambridge, which previously invested in Mexico through funds such as Kimco Realty Corporation’s Kimex Retail Land and Development Fund I.
The real estate investment management arm of Canadian pension plan Caisse de dépôt et placement du Québec intends to invest up to $500 million through MIRA Companies, a real estate investment and development platform that was founded by Black Creek in 2007 and focuses on commercial and residential assets in Mexico. Through MIRA, Ivanhoé Cambridge and Black Creek will develop mixed-use urban communities in major Mexican cities, including Mexico City, Monterrey and Guadalajara.
Ivanhoé Cambridge initially will deploy more than $100 million for a residential development in the Mexico City borough of Cuajimalpa. The project consists of two residential condominium buildings comprising 479 residential units, with a total of 500,000 square feet.
“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,” said Rita-Rose Gagné, executive vice president of growth markets at the company. “The investment is part of Ivanhoé Cambridge’s strategy of developing a long-term, active presence in growth markets.”
Jaguar Growth Partners, a New York-based private equity real estate firm led by former Equity International executives Gary Garrabrant and Thomas McDonald, advised the company on the transaction. Law firm Paul Hastings represented Ivanhoé Cambridge in the transaction, while Kirkland & Ellis represented Black Creek Group.
As of December 31, Ivanhoé Cambridge held assets totaling C$40 billion ($35.77 billion; €28.31 billion), primarily in Canada, the United States, Europe, Brazil and Asia. Its portfolio consists mainly of shopping centers, office and multifamily properties. Meanwhile, Black Creek has a 17-year track record in Mexico. It has invested approximately $2.1 billion in industrial, retail, residential and infrastructure assets through five Mexican real estate platform companies.