Vinte-NuEDGE

completed

The project is a loan to Vinte Viviendas Integrales, S.A.P.I. de C.V. (“Vinte” or “the company”) for $20 million to finance the construction of 2,000 homes to be certified against “Excellence in Design for Greater Efficiencies” (EDGE) in middle to low income housing developments in Mexico over the next five years. EDGE certified houses achieve a projected minimum reduction of 20% in energy and water use. Vinte’s housing developments typically are between 1,000 and 6,000 single-family 2 level houses in extent, averaging 80 m2 and the houses to be developed at part of this project will be similar in size though a new high rise apartment building complex will also to be developed by the company for the first time. The project will contribute to addressing a long-standing housing shortage in Mexico by providing good quality affordable housing in rapidly urbanizing areas of the country. Vinte is a holding company that includes six operating subsidiaries which undertake the following: (i) promotion of developments; (ii) research and development in housing, including technological, environmental, and design aspects; (iii) urbanization, design and construction activities; (iv) the distribution of computers, internet, and related services; (v) human resources management for all Vinte subsidiaries; and (vi) the sale of home equipment such as floors, closets, furniture and solar panels. Vinte’s activities related to housing operations include land acquisition, house design and housing development planning, construction and sales. Vinte offers several housing products within the affordable entry-level and middle income segments and has built and is planning to build housing developments in the states of: Mexico State, Quintana Roo, Hidalgo, Querétaro and Puebla. Vinte will have built approximately 44,000 houses by 2021. Once each development is complete, the company cedes management of the operations to a neighbor’s association or a third party administrator hired by the association. Through its subsidiaries, Vinte is responsible for all phases of design, development, commercialization and quality control of housing developments. This includes: land acquisition, architectural and urban design, research and development, construction, and retail of housing hardware and appliances. Vinte rely on construction contractors to only undertake land preparation activities and associated infrastructure to these developments (schools, water tanks, roads and water pipelines).