OPIC Commits Up to $50 Million to Low and Middle-income Housing in Colombia
July 17, 2018
WASHINGTON - The Overseas Private Investment Corporation (OPIC) has committed up to $50 million to Avenida Capital’s Colombia Real Estate Fund II (CREF II) to support the development of low and middle-income housing and sustainable commercial and mixed-use projects in urban parts of Colombia.
This investment by OPIC, the U.S. Government’s development finance institution, will help address increased demand for housing that has resulted from a growing economy and an expanding middle class in Colombia. The country currently has an estimated deficit of three million housing units. In addition to building more housing, Avenida will also support the development of retail and mixed-use properties.
Since 2010, Avenida Capital has been investing in real estate projects in Latin America. In Colombia, Avenida has a portfolio of over 40 projects, and is investing in the development of over 30,000 residential units and 2.7 million square meters of retail space. Avenida’s projects in development also include the first retail center in Colombia to be EDGE certified, a standard of optimal workplace conditions for men and women.
“Like many parts of the world, Colombia has a significant need for housing and public spaces to support a growing population of people living and working in urban areas,” said Ryan Brennan, Vice President, OPIC Office of Investment Policy. “OPIC’s partnership with Avenida will help us address this shortage.”
“Avenida is committed to serving our investors, the communities where we work and generations to come and through our strong on-the-ground operational oversight and our ongoing work to consider Environmental, Social and Governance (ESG) factors through the life of a project, we are working hard to achieve those high standards,” said Michael Teich, Avenida’s founder “We look forward to developing our partnership with OPIC.”
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.