Wednesday, December 6, 2023

Fibra Monterrey buys industrial real estate portfolio for US $662M

Real estate investment firm Fibra Monterrey signed a purchase agreement with real estate developer Finsa and Walton Street Capital México to buy Zeus, a 46-property industrial portfolio in northern Mexico. The properties are located in 11 states and comprise 822,000 square meters of construction plus 882,000 square meters of land for development.

The agreement, worth US $662 million, is the second largest industrial real estate transaction made in Mexico, after Fibra Uno purchased a 74-unit industrial real estate portfolio for US $841 million in 2019.

Finsa head Sergio Argüelles González, left, and Fibra Monterrey Director of Operations and Acquisitions Javier Llaca García
Finsa head Sergio Argüelles González, left, and Fibra Monterrey Director of Operations and Acquisitions Javier Llaca García marked their deal at an event on Wednesday. (Courtesy)

Twenty-seven developers and investment trusts participated in the selection process. Sixty percent were national companies, with the remaining 40% coming from abroad. According to the newspaper El Economista, a key factor was Fibra Monterrey’s reputation in the market. 

The Zeus portfolio was developed and acquired with funds from Development Capital Certificates (CKD), a structured private equity security that’s traded on the Mexican Stock Exchange (BMV).

Developed by Mexico in 2009, they are designed to raise sources of capital for Mexican companies and projects involved in sectors such as infrastructure, real estate, business and mining, among others.

“For a second time, we have achieved a successful sale with CKD capital. We are excited about the good results that we have attained during a key moment for Mexico, when nearshoring is so relevant for the country,” Sergio Argüelles González, president of Finsa, said. 

He stressed that this agreement proves the “good performance and liquidity of the Mexican real estate market,” and said that with the sale, “the three stages of this type of vehicle conclude: investment, stabilization and divestment.”

Last week, Fibra Monterrey reported it signed a syndicated loan for up to US $300 million and a revolving credit line that would allow it to complete the acquisition of the Zeus portfolio. 

Finsa now seeks to take advantage of the nearshoring wave to develop a new fund that will boost the company’s growth in Mexico over the next few years.

With reports from El Financiero and El Economista

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