Southern Bridge Capital (SBC) has closed its latest private equity real estate vehicle targeting affordable housing in Latin America. According to the real estate investment firm that specialises in Latin America and the Caribbean, the SBC Latin America Housing Fund has closed on $150 million in equity commitments, reaching its hard cap.
Approximately 45 percent of SBC’s total commitments came from outside of North America. The fund attracted contributions from public and private pension plans, fund of funds, charitable foundations and family offices. MVision Private Equity Advisers acted as placement agent for the fund.
Through the fund, SBC is looking to invest in low- and middle-income residential housing projects in Peru, Colombia, the Dominican Republic and the Republic of Panama. SBC invests through joint ventures with local real estate developers.
Thus far, the vehicle has deployed capital across six residential developments in Peru, Colombia and the Dominican Republic. Through this fund and its prior vehicle, SBC currently is building a total of more than 25,000 housing units in five countries in the region, with approximately 11,000 of the homes being financed with capital from the firm’s first fund and roughly 14,000 homes being built with equity from the SBC Latin America Housing Fund.
Formed in 2007, SBC specialises in project development across Latin America and the Caribbean. SBC’s first fund, the Central American & Caribbean Real Estate Fund, closed in 2007 with $42 million of commitments and currently is returning capital to investors. That fund invested in multi-sector real estate assets, including residential, leisure and commercial projects.