Los Portales (IDBI-12468-01)

Countries
  • Peru
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 10, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Los Portales, S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Construction
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Housing & Property
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Loan Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Sep 5, 2019

Disclosed by Bank May 9, 2019


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Project Description

The project involves a Senior Loan for US$40 million with a ten-year term intended to finance part of the plan to purchase new land for Los Portales to be used in urban development and social housing projects in eight Peruvian cities. It is estimated that 19 projects will be developed in eight cities in Peru, which will benefit from access to first-time buyer housing for about 12,000 families in the socioeconomic sectors B-, C, and D.

 

Early Warning System Project Analysis

Los Portales S.A. ("LP" or "the Company") is a company founded in 1996 and active in the housing and hotel business in Peru. LP's operations are primarily based on real estate activity and it is a leader in the urban development business market, operating in 18 cities and 13 provinces in Peru. 

The  Senior Loan for US$40 million is intended to finance part of the plan to purchase new land for Los Portales to be used in urban development and social housing projects in eight Peruvian cities. It is estimated that 19 projects will be developed in eight cities in Peru, which will benefit from access to first-time buyer housing for about 12,000 families in the socioeconomic sectors B-, C, and D.

 

People Affected By This Project

Information on social and environmental impacts and risks for the project are not provided. The disclosed information relates primarily to the company's Integrated Management Policy & Management System and procedures, covering risk prevention, environmental preservation, and development of socially responsible behavior.

Nevertheless, it is stated that "urban development projects involve moving earth for improved access to the project"; “no indigenous peoples are affected”; “there are no effects on cultural heritage”, and “there is no displacement of people or economic activities”.

It is informed that the Environmental and Social Action Plan(ESAP) is attached, but it is not.

Investment Description
  • IDB Invest

The project involves a Senior Loan for US$40 million with a ten-year term intended to finance part of the plan to purchase new land for Los Portales to be used in urban development and social housing projects.

Private Actors

In operation since 1996, Los Portales S.A. is a Peruvian company with the following core business lines: (i) hospitality services, including the operation of five 3- to 5-star hotels catering to corporate and executive travelers (ii) real estate services, focusing on real property sales through urban land development and low-cost housing projects; and (iii) parking facilities services, including the operation, utilization, and management of its own such facilities via franchise or lease.

Contact Information

Juan Carlos Rubio
Central Manager, Administration and Finance
(511) 211 4466

jcrubio@losportales.com.pe