The number of new houses built in Mexico is declining, and an estimated one third of the population is living in sub-standard homes. A new capital raise in Vinte will over the next five years add an additional 30,000 sustainable houses, targeting lower- and middle-income families across several locations in Mexico.
Vinte is one of the larger home building companies in Mexico with a track record of close to 50,000 new houses including surrounding communities within the last 18 years. Vinte is focusing on building sustainable houses reducing the use of building materials, water and energy and is the first company to build World Bank EDGE certified homes in Mexico.
IFU, the Danish Development Finance Institution, has contributed USD 20 million to the capital raise. The investment is made on behalf of the Danish SDG Investment Fund, which is a public-private partnership backed by the Danish State and larger Danish pension funds.
“Across all investments, our goal is to contribute to a green, just and inclusive economy. The investment in Vinte is a perfect match as the company will build sustainable communities with almost 30,000 new homes, public schools and primary care units for lower- and middle-income families in Mexico. We are pleased to contribute to this growth, raising the bar, and hope Vinte will be an inspiration to the industry and policymakers in Mexico and beyond,” said Torben Huss, CEO of IFU.
Operating the entire value chain
Vinte is a vertically integrated Mexican sustainable developer, and its operations comprise the entire housing industry value chain from land acquisition, urbanization, design, construction and commercialization to the promotion of community life. It covers the segments of affordable entry-level income housing in the States of Mexico, Queretaro, Hidalgo, Quintana Roo, Puebla and Nuevo Leon.
“With this important equity increase, Vinte confirms its vision of growing under a shared value business model, with a high impact on the UN Habitat’s Sustainable Development Goals. Denmark’s SDG fund has world-class impact investors, such as the Government of Denmark (IFU) and Danish pension funds. We will seek to continue innovating, now together with this strategic fund, to increase the well-being of Mexican families who acquire a home in Mexico and in Vinte. Recent investments of impact funds from Denmark, Germany and France in Vinte support us towards continuing to grow with a long-term vision together with world-class strategic partners and allies.”
Sergio Leal Aguirre, Vinte’s Executive President and Chairman of the Board.
Supporting the Global Goals
The capital raise will especially contribute to the realisation of SDG 11.1: Access for all to adequate, safe and affordable housing, and SDG 12.2: Achieving the sustainable management and efficient use of natural resources.