The FINANCIAL -- 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.
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