Colored area in the center of the map is the land to be sold. Colored area in the center of the map is the land to be sold.

Big real estate deal possible in CDMX

125-hectare military site could go for as much as US $1 billion

The Mexican government could soon receive a windfall of as much as US $1 billion through the sale of a piece of real estate.


According to a report by news agency Reuters, the federal government is preparing to sell a 125-hectare military site in Mexico City that is one of the last remaining large parcels of developable land in the central area of the megalopolis.

Reuters said the government quietly announced the possible sale in a document published in its official gazette in January, and its inquiries confirmed that “plans for the sale are now under way.”

The site, which according to the government document is no longer needed by the military, is located between the upmarket business district of Santa Fe and the affluent Lomas de Chapultepec neighborhood.

That location, along with its ample green space, would make the site very attractive to real estate developers and investors in a densely populated city where land is at a premium.

“It would be the most important development project in Latin America by far,” the chief operating officer of Mexican private equity firm Hasta Capital told Reuters.

“This is going to present a once-in-a-generation opportunity to do a neighborhood from scratch,” Rodrigo Suárez explained.


The base price for the site would be set by Mexico’s Appraisal Institute but real estate experts believe that it could reach as high as US $1 billion.

However, they explained that accurately measuring the true value of the property will be difficult until the government announces what kind of construction will be allowed.

If high-rise, luxury construction is given the green light it could significantly increase the land’s value and attract attention from institutional investors such as U.S. pension funds and sovereign wealth funds, the real estate experts said.

If a $1-billion sale materializes, it would be the most lucrative sale in Mexico ever and one of the largest in Latin America. Proceeds would go to the federal treasury.

According to four Mexico City real estate professionals, the government intends to hire international brokerage Jones Lang LaSalle to market the site.

However, a spokesman for the federal agency that would manage the sale said no timeline has yet been set for the sale nor has it determined the manner in which it will be sold.

The process to determine land use zoning will take time and any large-scale development is also likely to face stiff opposition from residents of a city that is already facing significant strains on its infrastructure.

However, there is considerable incentive to move quickly. Mexico will hold its presidential election on July 1 and President Enrique Peña Nieto will leave office at the end of November.

The ruling Institutional Revolutionary Party (PRI) will likely be keen to finalize the sale before any possible exit from government, which according to current polls is probable.

In contrast, current frontrunner Andrés Manuel López Obrador “might not be amenable to a massive new real estate venture,” Reuters said.

The leftist Morena party leader has already indicated that if he wins the election he may move to cancel construction of the new Mexico City airport to save money.

Source: Reuters (en)

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  • cooncats

    The PRI will be keen to do the deal so they can pocket as much as possible.

  • Robert McGuffey

    God help Mexico if Lopez Obrador is the next President. On the other hand he would be almost like the old ruling party PRI or President Nieto. What happened tothe progressive PAN party candidates?

    • David L. Allison

      The establishment voices rise in defense of the status quo, NAFTA and the continuing drug war.

  • Beau

    Enrique Pena Nieto going away present.

  • IT-Worker-Since-1990

    I really think they should finish the Mexico City airport. The current one is out of date, cannot handle the true volume of traffic and needs to be completely redone if the new one is cancelled.

  • David L. Allison

    OMG, a terrifying idea arises, PRI moves on and AMLO comes to power representing the indigenous and other Mexican people instead of short term profits and industrial manipulations by the real estate industry. Scary for the right wing USA folks who are always as hateful toward progress and equality in Mexico as they are in those same respects back home.

  • kallen

    I guess green space is out of the question.

  • GOPerson

    Here in Chapala, we have Christiana Park on the lake that is about that size. Seems under utilized.

  • WestCoastHwy

    “Show me the money…..babe!”, is not just a Tom Cruise saying. I see in my crystal ball another back office deal with expensive Colombian hookers and cigars.

  • WestCoastHwy

    AMLO…….what a boner killer!