Itaú Asset Management AFPISA Launches Innovative Real Estate Investment Fund in Paraguay
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Loading... - Seth Duncan
- 02 Aug 2024
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Itaú Asset Management AFPISA, in collaboration with financial consultancy Elqui Partners and local real estate developer Eleva from Zuba Inversiones, has announced the creation of a new real estate fund aimed at developing residential rental projects in Paraguay.
Details
Fund Name: IAM Plus Real Estate Investment Fund
Investment Amount: USD 25 million
Number of Projects: 10 real estate projects
Focus: Construction of multifamily residential rental properties
Location: Areas in Asunción with high prospects for residential rentals
Juan Manuel Fernández, CEO of Itaú Asset Management Afpisa, expressed gratitude to the investors who supported the innovative investment format. He highlighted that this fund marks a significant milestone in the local capital market, showcasing how development and financial engineering can generate added value for investors.
Multifamily Model
The multifamily model, originating in the United States, has been successfully implemented in Brazil, Mexico, Chile, and other countries in the region. This model is characterized by:
Exclusive Rental Purpose: Entire projects are designed exclusively for rental purposes.
Single Ownership: Typically managed by a single owner.
Enhanced Amenities: Projects offer superior amenities and common spaces compared to conventional buildings.
Strategic Locations: Located near employment centers, schools, universities, health centers, and shopping centers, with excellent connectivity and accessibility.
Market Potential
The demand for multifamily units is driven by several factors:
Rural-Urban Migration: Movement from rural to urban areas increases the need for housing.
Smaller Family Sizes: A trend towards smaller family units boosts demand for smaller rental units.
Increased Demand for Amenities: Growing preference for better services and amenities.
Limited Mortgage Credit Access: Challenges in accessing mortgage credit make rental properties more attractive.
Asunción presents a promising environment for the implementation of the multifamily model due to these driving factors. The IAM Plus Real Estate Investment Fund aims to capitalize on these opportunities by providing well-located, high-quality rental properties that meet the evolving needs of the urban population.
This fund represents a strategic investment in Paraguay's real estate market, aiming to deliver significant returns for investors while addressing the growing demand for rental housing in Asunción.
