CCLA and Bancolombia Enter Into a Joint Venture to Develop and Operate Multi-Family Buildings Across Colombia
BOGOTA, Colombia--CCLA, a partnership between CIM Group and Compass Group, which is focused on owning, developing and operating real estate in Latin America, and Bancolombia, a financial institution with more than 146 years of history and a broad presence in LATAM, announced today that they have entered into a joint venture (“JV”) to develop and operate purpose-built, for-rent multi-family buildings across Colombia’s largest cities, starting with Bogota.
The JV aims to develop a portfolio of mid to high-rise buildings, with the objective of developing 5,000 units in the next five years. Additionally, this JV positions CCLA and Bancolombia among the leading institutional multifamily investors, developers and operators in the country.
“Bancolombia is an ideal partner for expanding our presence in Colombia based in part on the group’s ability to adapt to new client requirements and introduce business units to promote sustained economic development and benefit communities,” said Ricardo Goldberg, Managing Director at CIM Group. “Through this partnership, we are not only increasing our presence in Colombia but also supporting the consolidation of our platform across LATAM, striving to replicate what we have achieved in Colombia and Mexico to other countries in the region.”
Additionally, Cristina Arrastia, Business Vice President of Bancolombia affirmed that through this joint venture, “we seek to respond to the housing needs of all types of people. On the one hand, we offer credit and leasing products for those whose life goal is to own their home. On the other hand, we bring this leasing model for those who prefer to pay for the use of things without being tied in another way. Thus, we complete an offer of solutions that adapts to any family.”
In 2018, CCLA and GIC, Singapore’s sovereign wealth fund, entered into a JV to develop and operate purpose-built, for-rent multi-family buildings across Mexico’s largest cities including Mexico City, Guadalajara and Monterrey. The objective is to position the companies as the institutional investors, developers and operators of multifamily residential for-rent assets in the country during the following years.
“Our goal is to revolutionize the multi-family segment in the LATAM market, aligning with the specific requirements of each country and city. In particular, we’ve seen a tremendous need to improve the residential assets available throughout Colombia, and we believe we can more effectively serve tenants and benefit communities in the country,” said Sebastian Luque, Country Head of CCLA Colombia.
Over the next few years, CCLA also plans to consolidate its current business in Chile & Peru and expand to other LATAM regions such as Brazil.
About CCLA
Established in 2016, CCLA, a joint venture between CIM Group and Compass Group, primarily develops, owns, and operates, well-amenitized including mixed-use real estate assets in Mexico and Latin America. CCLA relies upon CIM’s North American opportunistic investment, development, and operational expertise and Compass’ long-term asset management track record, strong local footprint and market expertise in Latin America, to oversee the development, design, construction of projects as well as marketing and management of operating residential buildings. CCLA currently operates more than 2,300 apartment units and approximately 300,000 square feet of commercial properties, with 5,500 apartment units under development in LATAM. For more information, please visit www.cclagroup.com
About Bancolombia
Financial group with 146 years of history, and with a presence in Colombia, Panama, Guatemala and El Salvador. It offers a portfolio of financial and non-financial products and services to more than 20 million clients. It provides, among others, commercial and consumer banking services, stock brokerage, financial leasing, factoring, trust services, asset management, private banking and investment banking. It has declared to promote economic development to achieve the well-being of all, seeking to positively impact the communities of the countries in which it operates. For more information, please visit www.grupobancolombia.com