Prudential in joint venture talks with local property developer

The construction industry has been hit hard by the financial crisis but Prudential is looking to invest in the housing market

The real estate investment arm of the Prudential group is negotiating with Chilean property developer Paz Corp to undertake a joint venture in the housing market. The Chilean market had been virtually stagnant in 2006/2007 and has gone into definite decline during 2008, causing some to question the timing of Prudential’s interest. In the first nine months of the year, construction, as measured by the total surface of new building permits, dropped by 5.8%. For September alone, housing permits dropped by 18.3% while permits for commercial property were 52.6% lower.