Marhnos is a Mexican construction company with experience in roads, hospitals and real estate development. Mexico Infrastructure & Sustainability Review interviewed Iñigo Mariscal, Co-Director General of Marhnos to talk about the opportunities in participating in social infrastructure PPPs and residential real estate growth in Mexico.
As often the government often lacks human and financial resources to plan the new projects that the country requires, the public sector is jumping in with unsolicited proposals (USPs). “We have used this scheme to develop projects with a positive cost-benefit return, understanding that not all gains are monetary but are also related to security and inclusion,” says Iñigo Mariscal, Co-Director General of Marhnos. “We always build to operate in the long term so we make sure to build well and with high quality.”
When participating with USPs, Marhnos starts all projects in a way that makes sense socially. “We want people to live near their work and social sphere, so they can reduce commuting times and have a better life quality,” he says. But with exponentially growing populations and cities, this endeavor is becoming a titanic one.
Marhnos believes that the solution is in recycling space. “Recycling the city is a time-consuming process as land is vacated and available at a slow pace,” he says. “We review over 30 properties a month but only about 2 percent is eligible to be recycled. We look at location, size and potential to fulfill our purpose of building welfare,” he adds. For example, with the Nueva Ribera development Marhnos reused an old Chocolate Factory and turned it into a residential complex.
Marhnos has five business divisions: Habitat, Roads, Hospitalia, Public-Private Buildings and Properties. Amid such a broad diversification, the company’s secret for success is to have a specialized team for every business segment. More than a company, Marhnos endeavors to become a platform for talent development and leadership. “We want to have people that are well-trained and has principles,” he says. “Our company is also a financial platform with a solid creditworthiness to back up our projects,” he adds.
On the latter, to keep raising capital, Marhnos is in the process of issuing its second CKD. “This is a long process but we are working with most of the companies we collaborated with in our first CKD: Banamex, Profuturo and Afore Banorte,” he says.
This CKD is expected to help the company finance its project pipeline in Mexico City and Guadalajara while continue bridging Mexico’s infrastructure gap through PPPs. “I think PPPs open the way to build the needed infrastructure without having the government disbursing any money,” he says. “Our goal is to build the best way possible on time, budget and quality. We do not get any money until we build and start operating.”