Paladin Realty has been investing in emerging markets real estate for over a decade on behalf of its institutional and high net worth investor clients. The firm targets regions where a growing middle-class population will require virtually every type of modern real estate product. Paladin Realty actively manages all aspects of the investment process and has extensive experience in evaluating and mitigating risk in emerging markets on behalf of its investors. The firm is a controlling investor and, as such, does not take passive minority positions in investments. Paladin Realty typically seeks to achieve annual returns in excess of 25% after taxes on its emerging markets investments using conservative amounts of leverage, which averages less than 50% of cost.

Recognizing the compelling demographics and growing economies driving demand for real estate in Latin America, Paladin Realty began actively investing in the region in 1997. To date, the firm has sponsored three investment funds that have developed projects throughout Latin America, including Brazil, Mexico, Chile, Peru and Costa Rica, with a total projected capitalization in excess of $3 billion. Paladin Realty’s strategy focuses mainly on primary housing, including low, middle and high-income products. Paladin Realty also invests selectively in resort projects and commercial properties, including industrial, office, hotel and retail. The firm typically forms “platform ventures” (i.e., programmatic joint ventures encompassing multiple projects) with experienced local operating partners intended to acquire or develop multiple projects over time within a particular product segment or geographic region. These local partner relationships have been instrumental in generating attractive returns to Paladin Realty’s investors while accelerating the growth of our local partners’ businesses.

Pursuing a similar strategy to its successful Latin America platform, Paladin Realty established an office in Istanbul in 2007 targeting the demand for modern real estate product by Turkey’s growing middle-class. The Istanbul office is managed by three senior Turkish real estate professionals who work closely with the firm’s senior investment professionals in the United States. Paladin Realty believes that Turkey’s demographics, its growing economy, structural reforms aimed at meeting European Union standards, and a shortage of modern real estate product, create an excellent investment opportunity in the mid to long-term for investment in Turkish real estate.

Paladin continues to evaluate other global emerging markets, including India, Central Eastern Europe, Africa and other regions where changing demographics and a growing middle-class bode well for real estate investment.