SHARE YOUR EXPECTED MINIMUM RATE OF RETURN (MIND SET EXERCISE)

[Federico Cantero]

OK. Let me make propose the next exercise to all.

What is in general your MINIMUM Rate of Return for your Real Estate projects? 

I know that there is a lot in play, Market, Project, Inflation, Leverage conditions, etc, but the exercise is mente to get and idea of the mindset and see if we can come out with some trends nationally and internationally.

So let me go first:

MAIN GEOGRAPHIC AREA OF INVESTMENT: Central Mexico (yea Mexico)

MAIN TYPE OF REAL ESTATE INVESTMENT: Single house / Rental and Apartamento Buildings

MINIMUM EXPECTED RETURN (ROI): 12%

INFLATION RATE  (CPI): 4.5%

There you go, lest see what we can find out of this.