Paladin Realty forms Peru JV

Paladin Realty Partners has formed a new joint venture, Palardo SAC, which will develop middle-income housing in Peru with developer Armas-Doomo Inversiones.

“[We] believe Peru offers very attractive development opportunities,” said Alejandro Krell, managing director and head of Central and South America for Paladin Realty, in a statement. “Peru’s economy continues to exhibit relatively strong growth, with steady household formation and greater purchasing power. Combined with low interest rates, limited supply and sizable pent-up demand, new housing stock is surely needed.”

Paladin initially has committed $8 million to the venture from its fourth pan-regional Latin America fund, with the option to increase its commitment up to a total of $32 million.

The investment period for Paladin Realty’s LatAm IV fund ended in December 2015. The firm’s local partner, Armas-Doomo, may commit up to $8 million to the venture