CHICAGO—Officials from Equity International, a privately-held investor that helps build real estate companies outside the US, say they and several partners have just closed a new investment in Grupo Acosta Verde, a family-owned developer, owner and manager of shopping centers in Mexico.
Funds managed by BlackRock and Altan Capital joined Chicago-based EI in the endeavor. EI's Tom Heneghan and Cliff Payne will join the company's board of directors.
Since 1992, the Monterrey-based Acosta Verde has developed 35 retail properties and currently manages 26 shopping centers, of which it owns 11. This portfolio comprises about 1.7 million square feet in 15 states. Acosta Verde created the Sendero shopping center brand and targets middle-class consumers. Sendero properties have a uniform design and key anchor relationships with Soriana, the second largest Mexican retailer, and Cinépolis, the second largest movie theater chain in the world.
“EI was an early investor in Mexican retail property, and we are pleased to return in partnership with a distinguished group of global investors who share our vision,” says Heneghan, EI's chief executive officer. “Acosta Verde is well positioned to deploy capital with an experienced management team and a proven, scalable concept.”
Consumer demand for higher quality products and lower prices has begun shifting the retail landscape in Mexico from predominantly small individual storefronts to more specialized retailers like Sendero. And growing consumer purchasing power in the country is driving an increase in the gross leasable area of many shopping centers.
Mexican shopping malls still have a lot of room to grow. EI officials cite market studies that show only 20% of the country's retail sales occur in shopping malls, compared to 56% in the US. In addition, personal disposable income in Mexico reached 73% of GDP in 2013, the second highest in the region and a significant factor driving wage growth.
“This new relationship is a perfect match for Acosta Verde's future,” says Jesus Acosta Verde, chief executive officer of Acosta Verde. “The strength of our brand, people and business model will benefit from this new growth capital and from EI's experience. We are honored to have institutional investors such as EI, BlackRock and Altan Capital.”
Founded in 1999 by Sam Zell, EI has raised over $2 billion and invested in 27 portfolio companies across 15 countries.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
