Direct private lender closes its 3rd land loan in Peru
ENGLEWOOD, NJ — Innovaciones y Ecologia Aplicada S.A.C. sought out Kennedy Funding to secure a land loan for its “Fundo El Progreso” project.
Via Englewood, NJ-based direct private lender Kennedy Funding, Innovaciones y Ecologia Aplicada S.A.C. secured a $3.71 million land loan in Piura, a city in northwestern Peru. The loan will be used toward debt payoff and for working capital for agricultural and commercial mixed-use applications across two lots.
Kevin Wolfer, CEO of Kennedy Funding, said that closing foreign loans, especially on raw land, can be highly difficult — but Kennedy Funding has both the experience and international network needed to swiftly, successfully fund South American deals. The private lending firm boasts over $4 billion in closed loans.
“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 Wolfer. “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.”
Innovaciones y Ecologia Aplicada S.A.C. initially purchased the land in 2012. To date, the borrower has invested substantially on infrastructure, installing electric, water, irrigation, and roads across all 15,000 acres of the property. The two new lots purchased via the Kennedy Funding deal cover, respectively, 1,631.78 hectares and 1,226.70 hectares of agricultural land. Both lots are zoned for industrial, residential, or agricultural use.
Wolfer said that funding deals often become more challenging when raw land is involved, as most lenders automatically view land as high-risk.
“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.”
“This property will be used for agricultural and mixed-used purposes in an area home to a large population of agricultural workers,” Wolfer said. “We immediately saw why the property is so valuable, and why the deal would be highly beneficial.”
This newest loan closing follows two previous Kennedy Funding transactions in Peru: a $2.5 million land loan to be used in a mountainous, inland Peruvian city, and a $3.65 million land loan for a real estate development in Lima, the capital and Peru’s largest city.
Kennedy Funding has closed dozens of loans in other South American countries, including Colombia and Brazil, and throughout the Caribbean, Canada, and Europe.