Prudential Real Estate Investors Latin America, the Latin American real estate investment management arm of Newark, New Jersey-based Prudential Financial, is seeking an investment from the World Bank’s International Finance Corporation (IFC) for a proposed fund targeting sustainable housing in Mexico.
The fund, Prudential Residencial Fund V, will be the first in Mexico to focus on sustainable housing developments that comply with the country’s national housing policy and Prudential’s sustainability guidelines, according to an investment summary on the IFC’s website. Prudential Residencial Fund V will invest in urban and suburban developments in Mexico and potentially could support the construction of more than 100,000 affordable housing units in the country, the summary said.
Prudential aims to raise the Mexican pesos equivalent of $500 million for the fund and is requesting the IFC to make an equity investment of up to the equivalent of $25 million. In addition to equity, the investment manager also is requesting the IFC to provide technical support and endorsement of the housing developments, as well as offer ad-hoc assistance to the fund’s management in assessing opportunities in Mexico’s low-income housing sector.
The IFC’s board of directors is scheduled to consider the proposed investment on 1 September, according to the summary. Since a board decision has not yet been made, Prudential declined to disclose a prospective launch date for the fund, but a spokeswoman said it would likely occur this year.
Prudential’s Latin America real estate arm currently manages more than $2.9 billion in gross assets in the industrial, residential, retail and office sectors in Mexico, Brazil, Argentina and Chile.