The Aureos Latin American Fund has agreed to launch an investment scheme with Urbi, a home-developer in Mexico, to promote and finance low-income housing in Mexico.
The scheme will provide low-income housing through both traditional mortgages and the Alternativa Urbi programme.
Urbi’s rent-to-own programme provides access to housing to non-wage earners, who represent over 50 per cent of Mexico’s economically active population, and who do not typically have access to a traditional mortgage.
Miguel Olea, managing partner of Aureos Mexico, says: “Aureos has extensive experience managing private equity funds across Asia, Africa and Latin America; now with Urbi, we have created a new exciting investment scheme, focused on new market niches, that is the only one of its type in Mexico.”
For the first phase, Aureos Latin American Fund has created a trust that will manage a housing volume representing 12 to 15 per cent of Urbi’s projected revenues over the next four years.
Cuauhtémoc Pérez, chief executive of Urbi, says: “It is a great accomplishment to participate with ALAF, who will provide its expertise in innovative investment schemes in emerging countries. Its participation will allow for an equity injection in the low-income housing segment, a strategic sector and a driver of Mexico’s economy.”
Alternativa Urbi mortgages will be granted by Sociedad Hipotecaria Federal (Mexican Federal Mortgage Agency) through its network of financial affiliates and shortly through Infonavit.
