Southern Bridge Capital has closed its newest fund, the SBC Latin America Housing Fund, with $150 million in commitments. The firm will invest in low- and middle-income residential housing projects in Peru, Colombia, the Dominican Republic and the Republic of Panama. Southern Bridge Capital was formed in 2007.
Southern Bridge Capital (“SBC”) is pleased to announce the final closing of the SBC Latin America Housing Fund (the “Fund”) with total commitments of US$150 million. The Fund closed at its hard cap with broad support from a high quality group of institutional investors.
SBC secured commitments from a globally diversified investor base with approximately 45% of total commitments coming from capital outside of North America. The Fund attracted a leading group of institutional investors including public and private pension funds, multi-laterals, fund-of-funds, charitable foundations and family offices.
The Fund seeks to invest in low- and middle-income residential housing projects in Peru, Colombia, the Dominican Republic and the Republic of Panama. SBC invests through joint ventures with best-in-class local real estate developers. SBC believes it benefits from a first mover advantage in its target markets due to its existing footprint in the region, extensive network of local relationships and reputation as a highly valued financial partner.
“We are extremely pleased with the success of our fundraise, which we believe is a testament to the attractiveness of the Latin American market and the desire of investors to access opportunities through a local team with a deep sector focus,” said Johnny Roux M., a Managing Partner at SBC. “We are proud of the close relationship SBC enjoys with its investors and would like to thank them for their strong support and conviction in the SBC team and strategy.”
The Fund has deployed substantial capital across six residential developments to date in Peru, Colombia and the Dominican Republic. SBC additionally benefits from a robust pipeline of attractive real estate investment opportunities and is currently building over 25,000 housing units in five countries in the region. Chronic deficits in the low and middle income housing segment coupled with a rapidly growing middle class and increased mortgage availability provide further credence to SBC’s investment strategy. Moreover, strong government support of the housing sector provides additional incentives to local homebuyers. SBC believes that the Fund is optimally positioned to capitalize on an underpenetrated market with compelling fundamentals.
MVision Private Equity Advisers acted as the global placement agent for the Fund. Legal counsel included Sadis & Goldberg LLP in the US and Walkers in the Cayman Islands.
About Southern Bridge Capital
Southern Bridge Capital was established in 2007 as an institutional platform for real estate investments in Latin America and the Caribbean.
SBC seeks to identify and participate in real estate investment opportunities through its extensive network of long established relationships in the region, the implementation of suitable risk managed capital structures and on-the-ground management execution. SBC has raised over US$200 million in capital across its closed-ended real estate funds and other investment vehicles.
SBC’s first fund, the Central American & Caribbean Real Estate Fund I closed in 2007 with US$42 million of commitments and is currently returning capital to investors. That fund invested in multi-sector real estate assets including residential, leisure and commercial projects.