Jaguar Growth Partners has backed another Mexican real estate company – its second such investment in a month.
In its latest investment, the New York-based private equity real estate firm bought a 5 percent stake in Corporación Inmobiliaria Vesta for an undisclosed amount, Jaguar said Wednesday. Vesta, the public Mexico City-based industrial real estate firm, owned 143 industrial properties across Mexico as of March 31, according to its first-quarter earnings report.
“Vesta is one of the most well-regarded and innovative real estate operators in Mexico, with an institutional-quality and diversified portfolio in the most dynamic markets,” Thomas McDonald, Jaguar managing partner and co-founder, said in Wednesday’s statement. “This investment is consistent with our focus on best-in-class operating partners in Mexico and leading industrial platforms in Latin America.”
This is not Vesta’s first capital infusion from a US investor: in 2004, the California Public Employees’ Retirement System made its first Mexican investment with a $50 million commitment to a joint venture with the company, according to CalPERS’ website. CalPERS sold its stake in 2006.
Earlier this month, Jaguar also purchased a 9.7 percent stake in another Mexico City-based company, Hoteles City Express, for an undisclosed figure. The firm, founded in 2002, owns hotel properties in Mexico, Costa Rica, Colombia and Chile, according to its website.
“As the largest hotel company in its targeted segments, Hoteles City Express is well-positioned to continue to grow and benefit from the solid fundamentals of Mexico's economy and its presence in diverse regions across the country,” McDonald said.
Jaguar closed its debut fund, Jaguar Real Estate Partners I, in January on $350 million, PERE previously reported. With capital from the vehicle, Jaguar is investing opportunistically in real estate-related operating platforms and companies in Latin America, including in Brazil, Mexico, Argentina, and the Andean region. Other investments from the vehicle include Costa Rica-based LatAm Logistic Properties, Brazilian retail property company Aliansce, and Brazilian AEL home builder Tenda.
McDonald and managing partner Gary Garrabrant founded Jaguar in 2013. Garrabrant was previously chief executive and co-founder of Chicago-based private equity firm Equity International, while McDonald was the firm’s chief strategic officer. Both left EI in 2012.