Mexico City, Mexico, June 12, 2011—IFC,
a member of the World Bank Group, is providing $25 million to a fund managed
by Artha Capital to invest in real estate in Mexico and create communities
that are developed under environmentally sustainable building standards.
The project involves the acquisition and development of land for planned
urban projects and basic infrastructure for housing, tourism, industrial,
and commercial development. The investment is the first of its kind at
a national level and will address inefficiencies in Mexico’s land development
process. It will help meet the demand for adequate housing with the construction
of about 60,000 new homes, most of them for lower-income groups, provide
employment opportunities, and stimulate economic growth in local communities.
“Artha Capital is pleased to partner with IFC in developing a well-planned
urbanization project that integrates housing, industrial, and retail components,
and ensures basic services, such as, schools, hospitals, water, electricity,
waste management, roads, and transport that benefit communities and reduce
the strain on existing infrastructure,” said Germán Ahumada Alduncin,
Managing Partner of Artha Capital. “In addition, our green design strategy
will conserve energy and water use in homes.”
“IFC’s investment in Artha Capital is fully aligned with our regional
strategy to support sustainable and innovative business models that help
address Mexico’s lack of housing and increase home buying for Base-of-the-Pyramid
groups,” said Oscar Chemerinski, Director, Manufacturing, Agribusiness,
and Services for Sub-Saharan Africa, Latin America, and the Caribbean.
“While the investment supports our client's focus on the green design
of buildings, the project’s integrated approach between residential development,
industrial park, and commercial areas, will enable people to live near
their place of work.”
IFC's strategy in Mexico focuses on supporting the government’s efforts
to accelerate growth, develop infrastructure, and deepen the financial
sector, while also promoting environmental sustainability, social development,
and corporate governance. IFC has invested $6.7 billion in Mexico’s private
sector since 1956, including $2.2 billion in syndications. For more about
IFC in Latin America and the Caribbean, please visit www.ifc.org/lac.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
About Artha Capital
Artha Capital is a Mexican real estate fund focused on buying and developing
land for affordable housing, retail, industrial, and tourism projects in
Mexico. Artha finances land and infrastructure investments by implementing
sustainable urban projects, basic infrastructure, and the sale of land
for housing, tourism, industrial, and commercial development.