Construction Trust

A feasible legal structure to invest in real estate in Argentina

In recent years the construction industry has grown, fuelled by various internal and external factors. Intense economic activity since 2003, in particular the agribusiness sectors, have had a strong influence in our region. The structural housing deficit, added to the lack of other alternative investments all conform to a positive real estate scenario. This sector is not affected by the sub-prime world crisis or the credit retraction, because of the low participation of banks in financing this sector.

The proliferation of real estate developments and the incorporation of non traditional investors have brought a new legal structure to the construction industry, referred to as a trust structure. This vehicle has been used in many cases where the land owner prefers not to sell, but rather become part of the project.