US RE Investor Plans CCD

After a few experiences as a co-investor in the asset class, private equity real estate investment firm Walton Street Capital is planning its own certificado de capital de desarrollo (CCD) fund, of up to MXP5bn ($405m). The US shop plans a fund investing in a broad array of Mexican real estate assets, potentially including residential, commercial, industrial, retail and even hospital assets, according to a prospectus. The return structure follows the typical format for CCDs – a preferred return, in this case 8.5%, followed by an 80%-20% division of additional proceeds between investors and the manager. Walton expects 16%-20% total returns for investors. Banorte-Ixe and Banamex are managing the transaction, for which the timing is unclear. Walton has been a co-investor in other real estate CCDs in the past two years, including deals from Construtora Planigrupo and Finsa.