Case | HBS Case Collection | December 2012 (Revised January 2014)

Residencial Los Andes

by Nicolas P. Retsinas and Lisa Strope

Abstract

Peninsula Investment Group is deciding whether or not to recapitalize an equity investment in a Residencial Los Andes, a residential project in Santiago, Chile, or take a substantial loss. The project did not meet its sales goals and the bank pressured the investors to liquidate the construction loan. Early on, Peninsula had identified Chile as a target market; however, in investing in Residencial Los Andes, it had made several exceptions to its investment strategy. The case addresses what went wrong in the evolution of the project, what measures would need to be taken if Peninsula did increase its capital commitment.

Keywords: real estate; emerging market; Latin America; finance; investment management; Management; Negotiation; Finance; Entrepreneurship; Real Estate Industry; Latin America;

Citation:

Retsinas, Nicolas P., and Lisa Strope. "Residencial Los Andes." Harvard Business School Case 213-074, December 2012. (Revised January 2014.)