Chiclayo, Peru

Strategy: Opportunistic Investment, Greenfield Development - Social Housing (rezoning)

In the booming expansion area of the Peruvian province of Chiclayo, a visionary, entirely new development strategy is being developed on 111.20 acres near Santa Rosa, aimed at the growing demand for social housing. This ambitious project, set to be rezoned to accommodate 3,120 social housing units over eight stages and nine years, capitalizes on the region's 1.4% population growth. By offering dual exit strategies, investors can earn a quick return by selling after rezoning within 1-2 years or fully developing the housing project, with additional options such as plot sales or third-party development also viable. This flexible investment approach, set against Chiclayo's expanding landscape, presents a unique opportunity to impact social housing while navigating several profitable avenues in one of Peru's key growth areas.

Investment Highlights

  • Dual Exit Strategy Flexibilty

  • Community-Centric Design

  • Commitment to Social Housing Needs

  • Proven Area Growth Rate of 1.4%

  • Expanding Middle Class

  • Robust Social Housing Segment

  • Opportunistic Investment, rezoning upside

  • +2.98% Avg. 5Y GDP Growth (LATAM 1.2%)

Offering Snapshot - Exit Strategy 1

  • Land Area

    111.20 Acres

  • Strategy

    Rezoning

  • Land Cost

    US$ / Acre = 24,280.00

  • Cost After Strategy

    US$ / Acre = 60,702.90

  • Execution Time

    2 Years

  • Total Project Cost

    Land Cost: $710,000.00

    Soft Cost + Accesibility: 1’055,00.00

    Total: $1’765,000.00

  • CoC

    382.44%

  • Return - IRR

    96.56%

Offering Snapshot - Exit Strategy 2

  • Land Area

    111.20 Acres

  • Recreation, Green Areas, Contributions, Roads

    53.37 Acres

  • Marketable Area

    57.82 Acres

  • Total Units

    • 3120 Units

    07 Stages

    Sales rate: 35 Units Monthly

  • Units area

    • R: 808 SF Average

  • Total Project Cost

    Land Cost: $1’765,000.00

    Hard Cost: $46’556,892.11

    Soft Cost: 9’925,544.74

    Total: $ 57’543,536.84

  • Capital Require

    $ 9’516,923.69

  • Term

    09 Years

    08 Stages

  • Sales Rate

    32 Units Monthly

  • Cap Rate

    7.96%

  • Return - IRR

    20.27%

  • Sales Proceeds

    $ 74’910,530.32

Location Highlights

  • #1

    Solid Economy win LATAM

  • BBB

    Country Risk

  • 6.92%

    10Y Interest rate

  • 1.4%

    Proven Area Growth Rate

  • Lowest EU Cost of Living Index

  • €413 Billion

    Peruvian GDP (ppp)

  • +4.4%

    Adj. Avg. Family Income Growth

  • 1.2 Millon

    Housing Deficit in Peru

  • ~$ 12,000

    Subsidy Bonus Granted by the Government

“Strategically located near Santa Rosa, this 111.20-acre project in Chiclayo, Peru, presents a versatile investment in social housing or potential land resale, leveraging the region's notable growth dynamics.”

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The strategic greenfield project near Chiclayo, Peru, unfolds on 111.20 acres adjacent to Santa Rosa, offering a dual-exit strategy that caters to the dynamic housing demands of the region. The first exit strategy, focusing on rezoning within a 2-year timeframe, involves an initial investment of $1.765 million, with land acquisition costs at $24,280 per acre. Post-rezoning, the land value is projected to surge to $62,702 per acre, promising an impressive IRR of 96.56%, a testament to the area's potential for rapid appreciation and lucrative returns from strategic land enhancement.

Alternatively, the second exit strategy delves into the full development of 3,120 social housing units across 57.82 marketable acres, requiring a capital injection of $9.52 million. This extensive 9-year project, designed in 8 stages to align with market absorption rates, forecasts a Cap Rate of 7.96% and an IRR of 20.27%, culminating in sales proceeds of approximately $74.9 million. This approach not only underscores the project's financial viability but also its significant impact on addressing housing needs, showcasing a blend of sustainable community development and robust investor returns in one of Peru's burgeoning urban expansion areas.

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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