Private equity for real estate in Mexico : overview, challenges and opportunities
Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2015.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2016
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| Online Access: | http://hdl.handle.net/1721.1/101326 |
| _version_ | 1811095248754966528 |
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| author | Cruz García, Ariel Fernando |
| author2 | Albert Saiz. |
| author_facet | Albert Saiz. Cruz García, Ariel Fernando |
| author_sort | Cruz García, Ariel Fernando |
| collection | MIT |
| description | Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2015. |
| first_indexed | 2024-09-23T16:13:59Z |
| format | Thesis |
| id | mit-1721.1/101326 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T16:13:59Z |
| publishDate | 2016 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1013262019-04-12T09:17:39Z Private equity for real estate in Mexico : overview, challenges and opportunities Cruz García, Ariel Fernando Albert Saiz. Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. Center for Real Estate. Program in Real Estate Development. Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2015. Cataloged from PDF version of thesis. Includes bibliographical references (pages 66-69). Considering Mexico's size and fundamentals, the Private Equity Industry in Mexico is underdeveloped but quickly growing. In an emerging market with over 60% of its population in its work force, and whose middle class will almost double by 2025, opportunities are emerging in all sectors. Private Equity funds could play a key role in financing and seizing them. Private Equity has had a low penetration in Mexico because of an immature financial sector, a legal system with a weak judiciary branch and a high concentration of family-owned businesses without institutional practices, among other reasons. However, this sector's potential in coming years is significant. The industry attempts to double its size by the end of this decade, translating into more available money at better prices. The question is: how can the government and industry leaders unlock this potential? Several actions at all levels of the public and private sectors are needed to access available capital. The purpose of this thesis is to show the trends, opportunities and challenges regarding the Mexican Private Equity Industry, focusing on real estate investments. Today, the investment cycle in the real estate arena is complete, generating confidence for Private Equity funds. A lack of supply in the Mexican market, regulatory changes allowing local pension funds to invest in alternative investments, and the introduction of Mexican Real Estate Investment Trusts as institutional buyers have provided managers and developers everything they need to capitalize real estate investment opportunities. Still, there are multiple challenges for the growth of the Private Equity Industry: authorities need to ensure regulation enforcement, existing vehicles such as "Structured Equity Securities" must improve for fund managers to raise and deploy capital, and the reforms underway (specifically the financial reform) must bring better long-term debt opportunities. If public and private entities decide to get in the same boat, Private Equity Investments can bring unprecedented benefits for funds, developers and the whole nation. The equity is now available and regulatory framework seems more investor-friendly. It is the turn for industry leaders and managers to guide their businesses in seeking institutional funding and thus contributing to Mexico's growth. by Ariel Fernando Cruz García. S.M. in Real Estate Development 2016-02-29T15:00:10Z 2016-02-29T15:00:10Z 2015 2015 Thesis http://hdl.handle.net/1721.1/101326 938820200 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 71 pages application/pdf n-mx--- Massachusetts Institute of Technology |
| spellingShingle | Center for Real Estate. Program in Real Estate Development. Cruz García, Ariel Fernando Private equity for real estate in Mexico : overview, challenges and opportunities |
| title | Private equity for real estate in Mexico : overview, challenges and opportunities |
| title_full | Private equity for real estate in Mexico : overview, challenges and opportunities |
| title_fullStr | Private equity for real estate in Mexico : overview, challenges and opportunities |
| title_full_unstemmed | Private equity for real estate in Mexico : overview, challenges and opportunities |
| title_short | Private equity for real estate in Mexico : overview, challenges and opportunities |
| title_sort | private equity for real estate in mexico overview challenges and opportunities |
| topic | Center for Real Estate. Program in Real Estate Development. |
| url | http://hdl.handle.net/1721.1/101326 |
| work_keys_str_mv | AT cruzgarciaarielfernando privateequityforrealestateinmexicooverviewchallengesandopportunities |