Expansion. FIBRA Storage Acquires Picacho Ajusco Land Reserve in Mexico for 90 Million Mexican Pesos

FIBRA Storage, the specialized real estate trust focusing on developing and leasing mini-storage units in Mexico, has recently announced a significant move in its expansion strategy. On August 14, 2023, they officially acquired a property known as "Picacho Ajusco" through a public deed. The purchase of this property amounted to a substantial 90 million pesos (approximately five USD million at an average exchange rate of 18 pesos per dollar), including closing costs. Construction for mini-storage use on this site is anticipated to commence in 2024.

FIBRA Storage's land reserves expansion is part of its ongoing growth and development strategy. Throughout this year, their strategy has encompassed the inauguration of two new branches in Mexico City and the acquisition of another piece of land.

During the first quarter of this year, FIBRA Storage achieved a significant milestone in its expansion plan by opening the "Condesa" branch on the "Vasconcelos" property, as well as a branch on Mariano Escobedo Avenue in the Polanco neighborhood. Additionally, they secured a land reserve on Periferico Sur, which will serve the Pedregal and San Jeronimo markets. This property is expected to be ready by mid-2025.

Currently, FIBRA Storage's portfolio consists of 36 properties, including 28 operational ones (comprising 16 stabilized and 12 in the stabilization process) and eight lands earmarked for future development. These properties boast an approximate gross leasable area (GLA) of 217,039 square meters and are valued at 6,295 million pesos (around 350 USD million). The non-operational properties, including lands and/or properties under construction, are valued at 606.4 million pesos (about 34 USD million) separately.

Over the past three years, the GLA of FIBRA Storage's portfolio has increased by roughly 41%, and its value has surged by approximately 58%, based on data analyzed by SiiLA.

At the close of the second quarter of 2020, the company reported owning 21 properties, with 16 in operation (seven stabilized and nine in the stabilization process) and five as land holdings. The portfolio comprised 153,460 square meters of GLA valued at 3,987 million pesos (around 221.5 USD million). The non-operational properties were valued at 163 million pesos (about nine USD million) at that time.

In its latest financial report, FIBRA Storage disclosed that as of the second quarter of 2023, they achieved an occupancy rate of 82.1%, surpassing the previous quarter's rate of 79.6%. According to FIBRA Storage, this increase was attributed to the overall improved performance of their portfolio, characterized by a net absorption of 6,931 square meters, achieving a positive balance between increased occupied rentable space and rates, as well as increased engagement from commercial clients, who expanded their share by 1.2 percentage points among the total client base.

For more information on FIBRAs and their portfolios, refer to SiiLA FIBRA Analytics or contact us at contacto@siila.com.mx.