Alsis Fund: Supporting affordable housing and community development in Mexico
Challenge: Limited capital in the residential Mexican housing industry
Solution: OPIC committed a total of $50 million across two separate funds managed by Miami-based Alsis Funds LLC, which targeted investments within the lower and middle income segment of the Mexican residential real estate industry.
Impact The Alsis Fund has provided critical capital to support the development of affordable and quality residential real estate that is centrally located to schools, hospitals, shops and public transportation. To date, the fund has invested $33.5 million into the Mexican residential real estate industry, which has supported the creation and maintenance local jobs.
One of the key ways OPIC supports development is through debt financing for emerging market private equity funds. These funds in turn invest directly in projects in developing countries. In 2008, OPIC committed $27.2 million to the Alsis Latin America Fund and in 2010, it committed $22.8 million to the Alsis Mexico Opportunities Fund. Both funds invest in low income housing projects.
These funds supported the construction of multiple low income residential housing projects in Mexico. In 2013, an OPIC monitoring team visited three of these housing projects: Grupo Gori in Villahermosa, Mexico; Grupo Gocasa in Monterrey, Mexico; and Grupo Procsa in Mexico City. All were designed as high-density developments located near major employers and public transportation networks, and to make efficient use of water and energy and foster a sense of community.
For example, the Grupo Gocasa Project is a 6,000-unit low income residential development, which, in addition to residential units, provides a community center with an open hall with space for sports, events, and gatherings, while the second floor has classrooms designed for educational and technical training purposes.
In addition to providing housing, these projects have supported the creation of well-paying local jobs. The three developments that OPIC visited are supporting 1,200 local jobs, all of which pay at least twice the construction industry minimum wage.
This project was profiled in 2013.