January 2019 | Interview: Alejandro Alzate Velásquez, VP Real Estate Investments, Manager at Inmoval Credicorp Capital

Interview
Alejandro Alzate Velásquez
VP Real Estate Investments, Manager at Inmoval Credicorp Capital

1- What is Credicorp Capital and what is its footprint in Latin America?
We are a group of companies dedicated to the provision of financial services and management of wealth and capital markets, originated from the consolidation of three leading corporations- Credicorp Capital Peru (formerly BCP Capital), Credicorp Capital Colombia (formerly Correval) and Credicorp Capital Chile (formerly IM Trust)- under a single holding company: Credicorp Capital Ltd.

We operate in the banking sector through Banco de Crédito del Perú (BCP), a leading company in the Peruvian market with over 125 years of experience; MiBanco, a leading microfinance institution; and BCP Bolivia, one of the main financial institutions in the Bolivian market. In the insurance sector, Credicorp participates through its subsidiary Pacífico Peruano Suiza (PPS), one of the leading insurance companies in the Peruvian market. In addition, Credicorp has Atlantic Security Bank (ASB), a bank established in the Cayman Islands in 1981; and Prima AFP, a pension fund administrator established in 2005.

Assets under management: US$ 40,031 MM
Listing on the New York Stock Exchange since 1995 BAP
Forbes N° 761 - Ranking of the world's largest companies
Market Capitalization: US$ 16.5 billion
Net Income: US$ 1.3 billion

2- Which are the most remarkable real estate projects in which the company is participating and in what way?
Credicorp Capital Colombia administers the Real Estate Collective Investment Fund INMOVAL, which currently has USD 450 million in assets under management, which correspond to approximately 200,000 square meters of GLA.

We mainly invest in the following assets:

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3- How do you see the prospects for economic growth in the different countries of the region?
Generally speaking, I think that, with the exception of Chile, our countries continue to be correlated with political issues and, depending on the results of the different electoral processes, the economies also react.

Having said that, I think the growth of the countries in the region will be similar to that of 2018 and will, of course, depend on external factors such as the price of oil, the trade war and the economic policy decisions of the U.S. and Europe.

4- At a regional level, how do you think it is possible to obtain greater profitability in a hotel project today? Which are the segments with less risk and in which markets?
I believe that each country has its own characteristics, complexities and type of users that make them unique, so it is not easy to generalize. One scheme that has worked for us is to get to know very well the target public, in such a way that we have in our portfolio different types of hotels and rates, as well as a due alignment of interests: both the real estate developer and the operator invest equity in our projects.

5- In your opinion, what are the greatest risks that a hotel investor faces today in the region and what would you advise?
Without a doubt, and in line with the previous answers, one of the most important issues is the political one. For a hotel project,  stability in the laws and clear rules from the beginning are essential for its development. Particularly, I am referring  to rules relating to land use and taxes.

Then there are the market issues in which the knowledge and know-how of the operator are fundamental: occupation, rate, type of user, etc.

7- You have participated in the thematic roundtables (TRT) during the last edition of SAHIC South America. In your opinion, how does this type of conference contribute to the hotel industry?
One of the aspects that most caught my attention during the conference held in Medellín last year is being able to share in the same table with different actors that have common and aligned interests, but that are not always perceived in this way: hotel operators, investors, governments that, from their tourism offices want to attract more visitors to our countries, and so on.

Understanding the needs of other actors, without a doubt, invites us to put ourselves in the shoes of the other in order to find solutions for the development of complex projects with different actors and interests.

8- Which social network do you use most often and why?
Very few: LinkedIn, for strictly work purposes such as identifying trends, sharing and reading articles of interest, etc. Sometimes Instagram. I don't have a Facebook account.

9 -When you travel for pleasure, where do you choose to stay: in a hotel or in an Airbnb?
Depending on the destination and the number of people travelling with me, I have used both with excellent results. For shorter trips or trips with multiple destinations, hotel chains are the best option, then for large families with long holiday periods Airbnb is sometimes better.

Profile:

Real Estate Fund Manager with over 12 years of expertise in Real Estate Funds:

- Structuring (legal and financial);

- Fund raising;

- Investments and asset allocation;

- Portfolio management;

- Investor relations;

- Closing; and,

- Property management.

CREDICORP CAPITAL - INMOVAL REAL ESTATE FUND MANAGER (Over USD 400 millions in AUM´S): responsible for asset allocation, risk management and transactions, but also for dealing directly with the land and structures on it.

To contact Alejandro Alzate Velásquez: aalzate@credicorpcapital.com

To learn more about Credicorp Capital, visit: credicorpcapital.com

Camila Lavori