Related Group Plans $1 Billion Push Into Mexico Real Estate
 Thomas Black - Bloomberg
| | The Related Group properties are designed for the way people live today - with functional living spaces and exceptional amenities. |
The Related Group Inc., a closely held builder of luxury condominiums based in Miami, plans to invest more than $1 billion in Mexican real estate to tap into U.S. demand for second homes on the beach.
The company has acquired land with Mexican partners and plans to build branded hotels and condominiums in Puerto Vallarta, Acapulco, Cabo San Lucas, Playa del Carmen and Zihuatanejo, Jorge Perez, president and owner of The Related Group, said in a telephone interview.
The Related Group, which has projects under development worth more than $10.7 billion, has been preparing for its push into Mexico for two years as the market for second homes from U.S. baby boomers heats up because of lower prices in Mexico and the country's proximity to the U.S., Perez said.
"Mexico is the natural extension for the second home owner and tourist from the U.S.," Perez said. "It has incredible weather and incredible beaches and landscape."
A luxury beach condominium that costs $300 a square foot in Puerto Vallarta will sell for five times higher in Los Angeles or San Diego.
The company will begin construction in six months on 336 condominiums in Puerto Vallarta worth more than $200 million, marking the first property as lead developer in Mexico, he said.
Acapulco Plans
In Acapulco, the company will begin building this year a 150-room hotel under the W brand from Starwood Hotel & Resorts Worldwide Inc. and 300 condominiums with a beach club. The developments in Zihuatanejo, which also may begin construction this year, Playa del Carmen and Cabo San Lucas will all be managed by "well-known international brands," he said.
Mexican partners, who mostly contributed land, will own equity stakes from 20 percent to 50 percent in the projects, he said.
"We're hoping to become definitely one of the leading developers if not the leading developer in Mexico," he said.
The Related Group, which had sales of $3.2 billion in 2005, also is preparing developments in Costa Rica, Panama, Colombia, Argentina and Uruguay, Perez said.
The Costa Rica project, which includes a 200-room hotel, 700 condominiums and a Greg Norman-designed golf course, may begin construction next year, he said.
To contact the reporter on this story: Thomas Black in Monterrey at tblack@bloomberg.net |
Vallarta Weddings
Puerto Vallarta Real Estate | February 2007 
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