Two Latham & Watkins LLP offices and Posse Herrera Ruiz in Bogotá have helped Brazilian private equity group Patria Investimentos set up a real estate-focused investment vehicle with Bancolombia.
The Colombian bank relied on Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) for the deal. Sullivan & Cromwell LLP is thought to have advised Bancolombia, but Latin Lawyer could not confirm this before publishing.
The deal was signed on 30 June and is expected to close in the third quarter of the year.
The joint venture will operate a long-term real estate investment fund with around US$1 billion worth of assets under management, positioning it as one of the largest funds in Colombia.
Patria and Bancolombia will hold stakes of 51% and 49% in the fund, respectively.
By teaming up with Bancolombia, Patria plans to consolidate its presence in Colombia, where it already operates several private equity and infrastructure investment services.
In a similar deal last year, the Latin American subsidiary of Australian investor Macquarie set up an airport investment platform with Colombian infrastructure company Odinsa in a deal worth US$142 million. Posse Herrera participated in that deal too.
São Paulo-headquartered Patria is a prominent investor in Latin America, with assets under management totalling US$27.3 billion. It has been actively expanding its real estate portfolio this year. Back in April, Patria subsidiary VBI Real Estate bought four property-focused investment funds from local counterpart BlueMacaw.
Bancolombia’s US$50.5 billion asset portfolio is larger than that of any other local bank. Elsewhere in Latin America, its financial products are available in El Salvador, Guatemala, Panama and Peru.
Counsel to Patria Investimentos
In-house counsel – Pedro Rufino, Ana Nakamura and Flavia Lodi
Latham & Watkins LLP
Partner Antonio Del Pino, counsel Santiago Bejarano and associates Daniel Chor and Aubrey Steiger in New York, and associate Valentina Oliver in Chicago
Posse Herrera Ruiz
Partners Jaime Herrera and Susana Gómez, and associates Julián Aguirre, Daniel Ortegón, Laura Aristizábal and Luis Torres in Bogotá
Counsel to Grupo Bancolombia
In-house counsel – Carlos Aldana, María Luisa Posada and María Camila Silva
Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partner Hernando Padilla and associates Daniela Mejia and Natalia Velasco in Bogotá