Caisse de Depot et Placement du Quebec, Montreal, through its Ivanhoe Cambridge real estate subsidiary, will invest up to US$500 million in mixed-use real estate in Mexican cities.
The investment will be made through a partnership between Ivanhoe Cambridge and real estate private equity firm Black Creek Group, said Rita-Rose Gagne, executive vice president, growth markets, at Ivanhoe Cambridge.
Ivanhoe Cambridge’s first investment through the partnership will be up to US$100 million in a residential development in Mexico City. Other investments are planned for Monterrey, Guadalajara and other Mexican cities.
This is Ivanhoe Cambridge’s first direct investment in Mexican properties, Ms. Gagne said. Previously, the firm had small investments in the country through external real estate investment managers. “It’s our way of entering into new markets,” she said. “Currently, our strategy is to identify strong local partners like Black Creek that are on the ground and have a long-term record in specific investments we’re looking at.”
Ivanhoe Cambridge is also considering similar partnerships with firms to expand in Asia-Pacific countries as well as in Latin America outside of Brazil, where the firm already has direct investments, Ms. Gagne said.
Caisse oversees C$214.7 billion (US$192.8 billion) in Quebec pension and other provincial assets. Ivanhoe Cambridge managed about C$40 billion in assets as of Dec. 31.