For 25 years, Vinte has been developing housing that is both sustainable and affordable for Mexico’s low- and middle-income families. Its three-year-old financing arm, Xante, has secured a convertible note from IDB Invest to buy back homes in Vinte’s planned communities, upgrade and remodel them as necessary, and sell them to new homeowners.
Xante’s renovation work is outsourced to small and mid-sized contractors, boosting local businesses. IDB Invest says the investment aims to strengthen Mexico’s secondary housing market “to help ensure a more efficient and equitable use of existing housing.”
Affordable housing
Vinte says its communities house more than 50,000 Mexican families in nine states. The publicly-listed company last year arranged $58 million in financing from the International Finance Corp. to acquire Javer, another real estate developer.
It also secured 500 million pesos ($25.4 million) through a sustainable bond issuance backed by German development finance institution DEG, and unnamed pension funds and local institutional investors. The bond will finance the construction of 1,200 new homes.
The capital raise and acquisition will advance the company’s goal of having 90% of its new and existing homes certified under the EDGE green building standards.
