Paladin closes third Latin America fund

The Los Angeles-based firm has raised $454m for Fund III and will target affordable homebuilding and distressed opportunities in Brazil, Peru, Mexico and Chile.

Paladin Realty Partners has closed its third Latin America fund on $454 million in commitments.

Paladin Realty Latin America Investors III is 44 percent invested to date, having committed $200 million to housing-related deals in Brazil and Mexico, as well as recapitalising two public homebuilders in Brazil.

The firm said in a statement it would continue to target affordable housing projects across Latin America, as well as distressed opportunities, including the recapitalisation of public real estate companies struggling with liquidity issues in the wake of the credit crisis. Paladin recapitalised Brazilian development companies, EVEN Construtora e Incorporadora and InPar, in the past year.

Paladin said it expected to use between 30 percent and 40 percent leverage, giving it the ability to invest around $1.5 billion of capital in Brazil, Mexico, Chile and Peru. The firm’s placement agent was Triton Pacific Capital.

The fund continues the same investment strategy that Paladin Realty has successfully pursued in Latin America for over a decade, spanning over $3 billion of assets located primarily in the investment-grade countries of Brazil, Mexico, Chile and Peru.

Founded in 1995, Paladin has invested in more than 120 real estate projects to date.