New partnership announced for housing development in Costa Rica

A Latin American real estate investment fund has announced a $10 million partnership to develop middle income residential units in Costa Rica.

The deal comes at a time when demand from a rising middle class in the country for homes is soaring.

The equity investment by Paladin Realty Partners is in the newly created home building joint venture GVL III with CSC Management and  Development for the project in San José.

It means that Paladin Realty has now invested in three joint ventures with CSC, with eight housing projects underway to date totalling over 1,700 units.

The GVL III joint venture is anticipated to produce up to 400 middle income residential units and total sales value of up to US$60 million.

Founded in 2003 by former senior executives of Bovis Lend Lease Corporation Latin America, CSC is one of the largest middle income home builders in San José.
 
‘We’re thrilled to begin this exciting project in Costa Rica’s most important urban market, said Alejandro Krell, managing director of Paladin Realty, who oversees the firm’s investments in Central and South America outside of Brazil.

‘As the nation’s prosperity and access to mortgages rises, these types of projects are filling the demand for housing by the emerging middle class. We’ve had a very good relationship with CSC in the past and we look forward to working with them on the GVL III platform,’ he explained.

David Segura, director of CSC, confirmed that demand for well built, nicely designed, affordable real estate is growing. ‘With Paladin Realty’s investment, we plan to continue to help satisfy that need,’ he added.

Founded in 1995, Paladin Realty Partners, is a leading institutional real estate fund manager focused on Latin America. Over the past 15 years, the firm has invested in the planned development of over 25,000 residential units, commercial properties, and select opportunistic situations, totalling over US$5 billion of projected total cost located in Brazil, Colombia, Peru, Mexico, Chile and other countries across the region.

Paladin Realty is headquartered in Los Angeles, with offices and/or staff located in Brazil, Mexico, Colombia, Argentina and New Jersey.