Andean Region
Paladin Realty has been active in Colombia, Peru and Chile since 1999 through a series of joint venture relationships with local developers. The firm begin in Chile in 1999, entered the Colombian market in 2009, and Peru in 2010. As in other regions, Paladin has focused on for-sale workforce housing due to the large and growing housing deficits in each country.
491
Assets
15,279
Units
$786m
Total Cost
$2bn
Realizations
26%
Realized Assets
To date, Paladin Realty has invested in X projects in the Andean region, spread fairly evenly between the three markets. The firm has focused on the principal cities of Bogota, Lima, and Santiago, although on an opportunistic basis has developed housing in Baranquilla and Cartagena in Colombia, Trujillo in Peru, and Viña del Mar in Chile.
As in Mexico, several subsidy programs in Colombia and Peru currently add to the attractiveness of low- and middle-income housing; in Colombia, subsidies under the VIS program can reduce downpayments by 80% as well lower mortgage interest rates up to 400 basis points. In Peru the Mi Vivienda program can reduce downpayments by 50%, and by building sustainable housing, which Paladin is a recognized champion of, the Bono Verde program can lower buyers’ mortgage interest rates by up to 300 basis points.