IDB Invest, Menorca Inversiones Support Peru’s Urban Rehabilitation
• By 2024, Menorca is expected to develop a total of 1 million square meters of land, delivering more than 2,500 lots annually
IDB Invest granted up to $20 million in financing to Menorca Inversiones S.A.C., a company dedicated to the development of urban development and affordable housing, prioritizing low- and middle-income families in Peru.
The funds will be used to finance part of the company's investment plan for the 2022-2023 period, which includes the purchase of land for the development of this type of project.
The deal will allow Peruvian families to improve their living conditions and formally purchase a lot that provides good standards of water, power and sewage services, as well as security and green spaces. Access to quality housing will have positive impacts on their well-being, including children's health and education.
Most potential buyers are outside the conventional financial system, so direct financing from companies like Menorca is for many the only alternative to buying a lot and becoming formal owners for the first time. With this formal purchase, customers may eventually be eligible for credit by financial institutions.
By 2024, Menorca is expected to develop a total of one million square meters of land, delivering more than 2,500 lots annually. The company plans to increase its workforce by more than 28% until 2024 and strengthen its local value chain, increasing purchases from local suppliers by more than 75% until 2024.
IDB Invest will also offer advisory services to develop a comprehensive strategy to integrate circular economy practices into the business.
Social housing development has a double role in the economic and social development of Latin America and the Caribbean, since it contributes to the growth of the Gross Domestic Product in addition to contributing to improving the inclusion and equality of the most disadvantaged.
This project demonstrates IDB Invest's commitment to offer incentives and support the private sector to ensure the development of social housing with access to quality services, aligned with environmental sustainability criteria.
This transaction is expected to contribute to four United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Sustainable Cities and Communities (SDG 11) , Responsible production and consumption (SDG 12).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Menorca Investments
Menorca Inversiones is a 100% Peruvian capital company with more than 25 years of experience in real estate and urban development. It has developed more than 25 projects nationwide, benefiting more than 21,000 families. Its objectives are based on a management model that contributes to the orderly and planned growth of the country and the cities where it develops projects. Menorca's projects are characterized by sustainable green areas and have a landscape approach, as can be seen in its real estate developments in Piura, Chiclayo, Carabayllo, Pachacamac, Cieneguilla, Mala, Ica, Pisco and Arequipa.