A Timeline of CPG's Investment History
Building the Foundation
CPG Real Estate (CPG) was founded in 1998 and is now the leading real estate private equity investor in Latin America and the Caribbean.
Puerto Rico Retail Portfolio
CPG first entered the Puerto Rico real estate market with the acquisition of four retail properties from Manley Berenson Associates. Over the next several years, the firm accumulated the Puerto Rico Retail Portfolio of 15 enclosed shopping centers and power centers totaling nearly 5.5 million square feet. In 2005, the 97% occupied portfolio was sold to DDR in a $1.2 billion transaction—producing a combined deal IRR and equity multiple for CPG and its investors of 83% and 2.7x.
Puerto Rico: Other
Established in the market, CPG embarked upon a dedicated acquisitions program to pursue income-producing properties, capitalizing on significant pricing disparities relative to comparable assets in the United States given a shortage of entrepreneurial capital. From 2003 to 2005, CPG acquired several assets in Puerto Rico with investments totaling approximately $400 million.
In conjunction with Goldman Sachs and Perry Capital, CPG co-sponsored the Caribbean Real Estate Opportunity Fund ("CREOF"), a $472 million real estate opportunity fund dedicated to Central America and the Caribbean. Since 2005, CREOF has acquired income-producing assets in Aruba, Costa Rica, Panama, Puerto Rico, the Dominican Republic, and Trinidad—valued in excess of $750 million. The fund is currently disposing of its assets or refinancing certain positions.
CPG in partnership with D.E. Shaw and local developer Friedel Stubbe, acquired Dorado Beach, a master-planned resort in Puerto Rico. The development plan includes the first Ritz-Carlton Reserve in North America (opened December 2012), multiple luxury residences, 4 championship-winning golf courses, and other luxury amenities. CPG also plans to construct a 350-key JW Marriott Hotel & Casino on the property.
Distressed Debt Portfolios
CPG extended its investing initiatives and entered the distressed debt business by acquiring non-performing loan portfolios and originating high-yield loans to assist in asset recapitalizations. San Juan-based CPG Island Servicing (CPGIS) was established to provide asset management of the portfolio and execute on resolution strategies. CPG also launched Aurora Properties to market and sell both residential and commercial REO properties. CPG has completed six distressed debt transactions with a total unpaid principal balance of over $2.0 billion.
CPG currently has an extensive pipeline of off-market investment opportunities in Latin America and the Caribbean. Proprietary deal flow continues to be one of the hallmarks of CPG's investment approach. The firm continues to seek investment opportunities in the region through alternative investment vehicles.
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