One of Latin Americas' leading real estate investors and developer, Paladin Realty Partners, announced this week that their Paladin Realty Latin America Investors III, LP fund has finalized its first investment in Colombia.
Paladin Realty Partners (USD) $18 million initial investment will enable the creation of Pali-Trocha, a homebuilding platform based in Bogota, in partnership with La Trocha, Ltd., a 30-year-old family development firm focusing on higher density, highly designed housing and commercial projects in Bogota's upper income neighborhoods
This new La Trocha platform focuses on upper‐income residential infill projects and boutique hotels in urban Bogota, as well as opportunistic land and commercial deals in suburban paths of development outside the city. Consistent with Paladin Realty's historically low-levered investment approach in Latin America, the La Trocha projects are expected to be capitalized with approximately 70% equity and 30% debt. The first projects are expected to begin construction shortly.
"We're pleased to be making our first investment in Colombia after studying the market carefully for many years," said James R. Worms, Chairman and Chief Executive Officer of Paladin Realty Partners, LLC. "The demographic and economic trends of a growing middle class and burgeoning home mortgage market that we've seen across Latin America for the past 14 years are now taking root in Colombia, and we're proud to work with La Trocha, Ltd. on this new venture."
"Partnering with a well-known Latin American real estate investor such as Paladin Realty shows that our business model has bright prospects," said Enrique Giraldo, President of La Trocha, Ltd. "We're very excited to participate in this venture."
Paladin Realty Partners was founded in 1995 and is an institutional real estate fund manager focused on the United States and Latin America. In Latin America, the firm focuses on the development of for-sale housing as well as opportunistic commercial investments and select entity-level transactions and distress situations. In the United States, the firm pursues a value-added strategy that targets the renovation and repositioning of existing under-performing apartment properties. The firm has acquired or developed over US$7 billion of real estate across the United States, Brazil and other Latin America countries. Paladin Realty is headquartered in Los Angeles, CA, with offices in Morristown, NJ and São Paulo, Brazil.