Supporting the growth of Vinte, a company specialized in developing social housing in Mexico

Founded in 2001 and listed since 2016, Vinte focuses on the development of EDGE certified social housing. This vertically integrated real estate developer operates throughout the housing value chain, including the acquisition of land, obtaining permits, urban planning, and the design, construction and marketing of houses. Since 2003, the company has built 56,000 housing units through 27 projects (including schools, health centers and green spaces) in six Mexican States.

For Proparco, the project consists in a $20 million equity investment in Vinte. Over the last two years, Vinte has explored various opportunities for mergers and acquisitions to reach a critical size, thereby attracting foreign investors and increasing its liquidity for its action on the local market. In collaboration with BBVA (Vinte’s main bank), it has been determined that Javer, its main competitor in the social housing segment, would be an ideal candidate due to: (i) Javer’s size, which has enabled a transformational transaction for Vinte, making it the leading real estate developer in Mexico; (ii) the complementarity of the housing segments, as Javer focuses more on low-income segments; (iii) the complementarity of regional coverage, as Javer has a stronger presence in northern Mexico; (iv) an undervalued market price; (v) the main shareholders’ willingness to sell; and (vi) a low level of debt, enabling an immediate optimization of the capital under the management of Vinte.

Vinte has signed a stock purchase agreement (SPA) with Javer’s main shareholders for the acquisition of up to 100% of Javer with an equity value of MXN 4.29 billion. In November 2024, Proparco signed a $20 million investment in Vinte.

The expected impacts of this financing are as follows:

• More than 10,000 jobs supported in the company and its value chain over the next 5 years (direct and indirect jobs)
• This financing has 30% of climate mitigation co-benefits due to the extension of Vinte’s current EDGE certification practices to Javer, with support from an ESAP from Proparco/IFU. Vinte is currently the world’s largest builder of EDGE certified housing (more than 95% of housing certified EDGE in 2023). 50% of Javer’s housing is expected to be certified EDGE in the coming years
• Support for the provision of new or improved access to affordable housing for 64,300 beneficiaries over the next 5 years. Vinte and Javer both build resilient and integrated communities, with facilities close to essential infrastructure (education, hospitals, transport), close to jobs, in urban areas, and with a good social mix. In 2023, 68% of the clients of the combined entity were in the 3rd, 4th and 5th deciles of the population

The project will thereby contribute to the achievement of SDGs 8 (Decent work and economic growth), 10 (Reduced inequalities), 11 (Sustainable cities and communities), and 13 (Climate action).