CHICAGO-Mexico Home Capital, Ltd. and Grupo Financiero GBM, S. A. de C. V. have formed a joint venture to invest in affordable housing south of the border. Deals will range from $20 million to $100 million, Chicago-based Mexico Home Capital and Mexico City-based GBM say.

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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.