By Joshua Burd
Kennedy Funding has closed a land loan that will help a developer advance a mixed-use project in northwestern Peru, the Englewood-based direct private lender announced.
The $3.71 million transaction in the city of Piura is Kennedy’s third in the country and one of many in South and Central America, according to a news release. The borrower, Innovaciones y Ecologia Aplicada SAC, will use the financing to pay off debt and for working capital for agricultural and commercial mixed-use applications across two lots.
“To secure land loans in Peru and other countries outside the U.S., you need to team up with a direct private lender that’s well-versed in the locale’s real estate markets, political landscapes and laws,” said Kevin Wolfer, CEO of Kennedy Funding. “These private lenders are the only people with enough expertise to remain compliant with the complex local regulations and paperwork that are part and parcel of real estate, land use, environmental and title.”
In its announcement, the lender said Innovaciones y Ecologia Aplicada SAC initially purchased the land in 2012. To date, the borrower has invested substantially in infrastructure, installing electric, water, irrigation and roads across all 15,000 acres of the property.
Kennedy Funding added that Piura is Peru’s eighth-largest city, with roughly 325,000 people and a location along the Piura River within the Sechura Desert. One-third of the population works in agriculture, the firm said, making the borrower’s project a welcome addition to the city.
“Thoroughly, accurately appraising land in other countries is extremely difficult, but crucial for a successful international loan closing,” Wolfer added. “We work with world-renowned firms — independent experts for accurate property appraisals — so we can provide our borrowers with the largest possible loans.”
