Artha was founded by Mr. Carlos Gutierrez and Mr. German Ahumada who have a track record of over 16 years of experience in the real estate, infrastructure and financial markets. Artha’s Board and Investment Committee includes members such as Citigroup, BBVA, Bancomer and Banobras-Fonadin (Government Development Bank) as well as independent board members from Cushman & Wakefield and SOFTEC (Real Estate Market Research and Consulting firm in Mexico).

The total project cost is estimated at $250-300 million. IFC is planning to invest up to $25 million equivalent in Mexican pesos in equity alongside Artha and potentially other investors into an investment vehicle, which will then invest directly into individual sub-projects.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

The investment vehicle through which IFC will invest will be set up in Mexico and will make investments into individual sub-projects throughout the country.

The development impact of this project includes: (i) housing supply - alleviate the current housing shortage in Mexico; ii) community development - development of states and municipalities facilitating the efficient provision of municipal services; (iii) economic growth - contribution to the economic growth in the regions where investments will be made as a result of public private participation; and (iv) job creation - the project will create job opportunities both during construction and operation of the communities; (v) enhanced local supply linkages - increase demand for construction and building materials in the country.

(i) Provide long term equity investment: IFC will free up much needed equity capital requirements to develop and urbanize land in Mexico. (ii) Provide global expertise and market perspective for the sector, and particularly in the low income housing and retail segments. (iii) Provide technical support to Artha to be in compliance with IFC's environmental and social performance and to further create sustainable well planned urban developments in line with Mexican government sustainable development objectives.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

Key E&S issues reviewed at appraisal include: Artha's E&S project assessment processes as they apply to the land acquisition process, to ensure that all land acquisition is free and fair, avoids adverse impact on cultural heritage, and avoids or appropriately compensates any involuntary resettlement; and that construction activity within Artha's control is conducted with due regard to the environment and employee safety and working conditions.

Artha has provided information on its current practices and policies that seek to address environmental and social risks and impacts to ensure that the proposed project complies with or will, upon implementation of measures agreed upon as part of IFC’s Investment documents, comply with host country laws and regulations and IFC's Performance Standards (PS).