Paladin Realty's Mexico Focused Fund Finalizes Joint Venture Investment

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Paladin Realty Partners, a significant real estate investor and developer in Latin America, announced this week their Paladin Realty Latin America Investors III, LP fund has finalized its investment in a new venture called Orange, a homebuilding platform based in Monterrey, Mexico.

Paladin Realty's partner in the deal is Orange, Ltd. a SA, a vertically-integrated real estate company, founded in 2005 and based in Monterrey, Mexico that focuses on high-density urban developments, including mixed-use, office, retail, and multi-family.

This new Orange platform will target the evolving middle-income residential market in Monterrey, where consumer trends are shifting towards secured community living. Orange has demonstrated expertise in identifying these opportunities and capitalizing on them, since its founding in 2005. Consistent with Paladin Realty's historically low-levered investment approach in Latin America, the joint ventures' projects are expected to be capitalized with approximately 30% equity, 30% pre-sales income and 30% debt.

The partnership recently acquired its first project, "Fundadores", a mixed-use project with for-sale residential condos and townhouses, subterranean residential parking, and ground floor retail condos along the property's frontage to Avenida Fundadores.

"This new joint venture with Orange is already off to a great start with the acquisition of the 'Fundadores' project," said James R. Worms, Chairman and Chief Executive Officer of Paladin Realty Partners. "Monterrey is an exciting, growing market with many opportunities for this venture to produce the new kind of real estate consumers in that market are seeking. We're proud to partner with Orange Investments on this venture."

"We're excited to have Paladin Realty as our partner on this venture," said Carlos Rousseau, President and founding partner of Orange, Ltd. "Their expertise in Latin America and long-time presence in Mexico will be vital as we go forward with new projects."

Founded in 1995, Paladin Realty Partners, LLC 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.