Caisse’s property arm to invest up to $500-million in Mexican venture

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The real estate arm of the Caisse de dépôt et placement du Québec plans to invest up to $500-million (U.S.) in mixed-use urban communities in Mexico's main cities.

The move is Ivanhoé Cambridge's first direct investment in Mexico. It is partnering with U.S. private equity firm Black Creek Group in projects in Mexico City, Guadalajara, Monterrey and possibly other cities.

The initial investment, by way of Black Creek's Mexican real estate arm MIRA, is more than $100-million for a residential development project in the Mexico City borough of Cuajimalpa, next to the Santa Fe business district, Ivanhoé Cambridge said on Wednesday.

Two residential condominium buildings with 479 units are planned for the site.

"With this investment, Ivanhoé Cambridge is setting a major foothold in Mexico, which will provide excellent access to opportunities, including long-term investments in a portfolio of high-quality assets," Ivanhoé Cambridge's executive vice-president for growth markets Rita-Rose Gagné said.

"The investment is part of Ivanhoé Cambridge's strategy of developing a long-term, active presence in growth markets. The economic growth and demographic trends in Mexico are producing a large and sustained local demand for commercial and residential real estate."

Denver, Colo.-based Black Creek founded MIRA in 2007. The fully integrated real estate investment and development platform is currently developing master-planned mixed-use residential communities and large-scale mixed-use urban infill communities targeting Mexico's burgeoning middle-class population.

Projects include town centres with residential, office and retail elements.