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Chile’s LarrainVial has entered the US real estate market after purchasing a minority stake in two South Florida-based real estate and investment firms.
The Latin American financial firm announced on Friday it had acquired a 33% position in the holding company of Black Salmon, a Miami-based commercial real estate firm, and TSG, a real estate investment and development firm focused on urban markets.
LarrainVial’s CEO and chairman Fernando Larrain said that the deal was a ‘natural next step’ for his firm, adding that it also demonstrated ‘the domestic investment demands from foreign funds in Latin America and Europe.’
The firm did not reveal the agreement’s price tag but said it would also allow LarrainVial to bolster its real estate product offering to clients in the coming years.
Currently, LarrainVial has more than $1.2bn in real estate assets under management in Chile and Peru managed through investment funds and other strategies offered to the group’s investors.
‘The partnership with LarrainVial will allow an exponential growth of our holding company’s portfolio, within the asset classes the group is targeting, including land acquisition, new development, value-added strategies, and specifically in the multifamily and industrial sectors,’ said Camilo Lopez, managing partner of TSG.
‘This acquisition aims to foster the distribution of and access to multiple opportunities in all US real estate sectors more directly for Latin American and European investors,’ said Jorge Escobar, managing partner and co-CEO of Black Salmon.
TSG and Black Salmon have a total of $1.8bn in projects and assets under management, including a number of developments across Miami and South Florida.
LarrainVial oversees more than $28bn in assets and has a 17% market share in the stockbroker industry in the Andean region, the group said. It has offices in Chile, Colombia, Peru, the US and Panama.
The group also runs a fund distribution business in Miami where it markets its strategies to US offshore clients mostly in Latin America.