Chiclayo, Peru
Strategy: Opportunistic Investment, Greenfield Development - Social Housing
In the burgeoning outskirts of Chiclayo, Peru, this greenfield development strategy unveils a transformative social housing project spanning 23 acres, set to enrich the lives of its growing population, currently at 600K. Positioned strategically 6 kms from the city core, near Santa Rosa and Monsefu, the project plans to introduce essential infrastructure—roads, sidewalks, utilities, and communal spaces—in three meticulously planned stages. This phased approach ensures optimal capital utilization and aligns with the area's proven sales trajectory from similar endeavors. With a steady population growth rate of 1.4%, this initiative promises to not only meet the rising demand for housing but also to foster community and sustainability in one of Piura's most dynamic expansion zones.
Investment Highlights
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Comprehensive Infrastructure Plan
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Community-Centric Design
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Commitment to Social Housing Needs
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Proven Area Growth Rate of 1.4%
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Expanding Middle Class
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Robust Social Housing Segment
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Opportunistic Investment
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+2.98% Avg. 5Y GDP Growth (LATAM 1.2%)
Offering Snapshot
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Land Area
22.76 Acres
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Total Square Footage
20,45 Acres
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Marketable Area
12,28 Acres
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Total Units
• 620 Units
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Units area
• Lot Area 970 SF
• R: 300 SF (540 Und.)
• C: 300 SF (60 Und.) -
Total Project Cost
Land Cost: $1’196,000.0
Hard Cost: $7’382,284.0
Soft Cost: 1’529,080.0
Total: $10’107,789.0
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LTV
60%
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Term
30 Months
03 Stages
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Sales Rate
15 - 20 Units Monthly
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Cap Rate
7.96%
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Return - IRR
27.43%
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Sales Proceeds
$ 12’470,629.76
Location Highlights
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#1
Solid Economy win LATAM
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BBB
Country Risk
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6.92%
10Y Interest rate
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1.4%
Proven Area Growth Rate
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Lowest EU Cost of Living Index
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€413 Billion
Peruvian GDP (ppp)
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+4.4%
Adj. Avg. Family Income Growth
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1.2 Millon
Housing Deficit in Peru
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~$ 12,000
Subsidy Bonus Granted by the Government
“Near Chiclayo, Peru, a social housing project on 23 acres aims to provide infrastructure and community spaces in three efficient stages, addressing the area's 1.4% population growth and enhancing community living in Piura's expanding region.”
The Chiclayo social housing initiative presents a meticulously planned investment, leveraging 22.76 acres of land to create a vibrant community within a burgeoning expansion zone, 6 kms from the city center. With a marketable area of 12.28 acres designated for 620 units, the project's total cost is estimated at $10.1 million. A strategic phased development approach over 30 months ensures optimal capital utilization and aligns with the area's demographic dynamics, boasting a 1.4% annual population growth. The financial structure, supported by a 60% LTV ratio, underscores the project's feasibility and strategic foresight.
This greenfield venture in Chiclayo is poised for success, with a projected Cap Rate of 7.96% and an IRR of 27.43%, reflecting the significant potential for returns. The development's three-stage execution plan is designed to maximize efficiency and sales velocity, proven in similar area projects. By catering to the pressing social housing needs and fostering community development amidst Chiclayo's expansion, this investment stands as a robust proposition, offering both impactful social contributions and attractive financial returns in Peru's dynamic real estate landscape.
For interested investors seeking a deeper understanding of this opportunity, further information will be provided during subsequent discussions. This will include a comprehensive market analysis, detailed risk mitigation strategies, and an in-depth review of the financials.
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