Singapore's sovereign wealth fund GIC has entered a 5.5 billion Mexican peso (S$387 million) joint venture to develop and operate for-rent multi-family buildings in cities like Mexico City and Guadalajara.
GIC's partner in the joint venture is CCLA, a tie-up between CIM Group and Compass Group, which is focused on owning, developing and operating real estate in Latin America.
The joint venture targets a portfolio of mid-to high-rise buildings, each comprising about 250 to 400 rental units. CCLA will develop and operate the buildings, GIC said.
Mr Lee Kok Sun, chief investment officer of GIC Real Estate, said: "As a long-term value investor, we are attracted by the sustainable risk-adjusted returns of purpose-built apartments.
"This asset class provides a compelling option for a large and growing population of renters within our target income and geographic segments."
Mr Avi Shemesh, co-founder and principal of CIM Group, said: "We are seeing tremendous opportunities for an experienced owner and operator like CCLA to bring much needed institutional-quality residential assets and operations to Mexico's gateway cities..."
A day earlier, GIC announced that it and other investors had acquired a 55 per cent stake in AccorHotel's property business arm AccorInvest for €4.4 billion (S$7.1 billion).