The premise for the joint venture is Mexico's housing shortage, estimated to be 5 million units and growing by 500,000 units a year. "Mexico's housing sector, and specifically the low-cost segment of the market, represents one of the premier investment opportunities in the world today," says Mexico Home Capital founder and chief executive officer John Ganschow.

"The basic supply-demand fundamentals underpinning this market are extraordinary, and this translates into exceptional risk-adjusted yields for our institutional capital partners, which they cannot find today in the US or overseas," says Ganschow, adding the country is building a mortgage-backed securities market. "If this secondary market develops as we and others think it will, it could impact Mexico in much the same way as the MBS market did in the U.S. starting in the early 1980s when it triggered a prolonged housing boom that is still underway today."

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