- Loan of EUR 17m in local currency to medium-sized property developer
- Affordable low- and middle-income housing
Cologne, Germany, 9-9-2014 — /EuropaWire/ — In the rapidly growing cities in developing and emerging-market countries housing is scarce and construction activities are often inadequately controlled. Also in Mexico the demand for housing, especially for low and middle income groups, is high.
This is where the experienced medium-sized property developer Promotora de Viviendas Integrales, S.A. de C.V. (PVI) from greater Mexico City comes in. To date, the company has built more than 15,000 houses and apartments. PVI is planning to build another 3,000 houses according to green standards over the next seven years, targeting people on low and middle incomes.
To enable a long term planning of the company and to make the borrowed capital required available, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, provides PVI with a long-term loan in local currency to the equivalent of around EUR 17m. Already in 2012, DEG made a loan available to the company. PVI currently employs a staff of around 1,800, with approximately 200 new jobs being created thanks to the investment.
PVI has designed and implemented environmental solutions for an integral urban design. The company has already received various awards for sustainable architecture and energy-efficient housing development. PVI’s housing designs include solar panels for hot water and power generation, and water-saving toilets and showers. In addition, 35% of every development area is reserved for public use including parks, playgrounds and schools. 80% of rainwater is returned to the groundwater and an adequate solid waste management is implemented. DEG additionally co-finances an accompanying measure to develop sustainable building material made from rice husks.
The commitment to climate protection is a strategic focus of DEG’s business as is the support of small and medium-sized enterprises. DEG has been active in Mexico since 1966 and has a representative office in the country since 2003. In Mexico, DEG has to date provided companies with EUR 500m for investments, for example for infrastructure projects with a focus on renewable energies.
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