Prudential Real Estate Investors will invest up to $800 million (€509 million) in the second phase of a joint venture with Mexican developer Grupo Concord. The duo plans to develop 1,800 condominiums along the Sea of Cortez.
The real estate investment arm of financial services company Prudential will redevelop a 2.1-million-square-meter plot of land near the tip of the Baja Peninsula, an area home to a third of the world’s dolphin population and a place once described by Jacques Cousteau as the “aquarium of the world.”
The development, slated to begin later this year, will comprise around 1,800 condominium units, a marina, hotel and retail shops. It will also feature a golf course designed by renowned South African golfer Gary Player.
Mexico’s growing tourism industry is being targeted by private equity real estate firms, who predict rising demand for leisure services, particularly from US baby boomers.
Last month, real estate management firm, ING Clarion, announced its JV with development company Grupo Carrousel and Operadora Punta Maroma to develop a $150 million (€96 million) ocean front resort on Bahia Maroma along Mexico’s Riviera Maya. At the time the firm said Mexico was witnessing “favorable economic and demographic trends” including increasing demand for luxury resorts and second home real estate as well as rising demand from the US baby boom generation who wanted to devote more time to leisure.
PREI-Latin America chief executive officer Roberto Ordorica said Mexico’s “rapidly growing tourism industry” was a key reason for the firm to “strengthen our commitment to Mexico.”
PREI manages more than $45 billion in assets on behalf of 400 investors with offices in Parsippany, New Jersey and Atlanta, Georgia in the US as well as in Munich, London, Singapore and Mexico City.