FIBRA Macquarie to Expand Mexican Portfolio

A Mexican real estate investment trust is expanding its portfolio of industrial properties.
FIBRA Macquarie México’s portfolio as of March 31, 2015.

FIBRA Macquarie México’s portfolio as of March 31, 2015.

By Adrian Maties, Associate Editor

Monterrey, Mexico—A Mexican real estate investment trust is expanding its portfolio of industrial properties.

On Monday, June 22, FIBRA Macquarie México announced that it has reached an agreement to acquire 10 industrial properties in Northern Mexico. The REIT did not disclose the name of the seller, only saying that it is a Mexican institutional-quality industrial property owner and developer, but it did reveal how much it will pay for the assets, $105 million. The purchase price does not include transaction costs and taxes.

The 10 industrial properties are located in the cities of Monterrey, Reynosa, Tijuana, Ciudad Juarez and Saltillo. Together, they offer a total of 2.2 million square feet of space. FIBRA said that the portfolio is currently 93.9 percent occupied. Its tenant roster includes well known Mexican companies, multi-nationals and even a Fortune 500 company which accounts for 51.4 percent of annualized base rent. All properties are triple net leased. The REIT estimates that the portfolio will generate an incremental $8.7 million of net operating income on an annualized basis.

FIBRA will fund the acquisition with available cash. It hopes to close the deal in the third quarter of the year. Transaction costs and taxes are expected to total approximately $3.2 million.

“We are pleased to announce an acquisition that highlights our disciplined approach to the deployment of capital raised in September 2014,” Jaime Lara, CEO of FIBRA Macquarie, said. “This portfolio, which includes a landmark industrial asset in Monterrey leased to a Fortune 500 company, will allow FIBRA Macquarie to expand its footprint across key export hubs for trade to the U.S.”

FIBRA is listed on the Mexican Stock Exchange. The REIT is managed by Macquarie México Real Estate Management, S.A. de C.V., which operates within the Macquarie Infrastructure and Real Assets division of Macquarie Group. With the new assets, its portfolio will include 270 industrial, retail and office properties, with a total of 31.4 million square feet of space.

Photo credit: FIBRA Macquarie México