FIBRA Monterrey, the real estate investment trust (REIT or FIBRA) focused on industrial and corporate properties in Mexico, has closed a deal to acquire an industrial real estate portfolio valued at approximately $206.6 million, before taxes, acquisition costs, and expenses. This transaction includes purchasing six built industrial buildings and two more under construction, all Class A in Nuevo Leon, with a combined gross leasable area (GLA) of 186,105 square meters on lands with a total surface of 347,714 square meters.

The properties, with an average age of less than two years, are in four key industrial parks in Monterrey. According to data from SiiLA and the company, the acquired portfolio is fully occupied with a remaining lease term of 8.2 years from the acquisition date. Among the tenants of the eight properties that FIBRA Monterrey will purchase are light manufacturing companies, mainly from the automotive sector. These generate 63% of the portfolio's leasing income and are contracted in dollars. The remaining income comes from the logistics sector, with a leading e-commerce company in Latin America (Mercado Libre) as the primary tenant.

It is essential to mention that the structure of the contracts is triple net (NNN), meaning that tenants assume the costs of maintenance, insurance, and property taxes. According to the trust, the net operating income for the next 12 months is about $15.1 million. Furthermore, FIBRA Monterrey plans to settle an amount of $133.2 million by May 2024, corresponding to the acquisition of the six built warehouses. In contrast, the two buildings under construction will cost $73.4 million and be settled in the second quarter of 2025 once they are completed and the rent payments begin.

Although the most recent transaction of FIBRA Monterrey is still subject to legal and administrative conditions, it has already been approved by the Technical Committee of the trust. This transaction stands out for its economic and financial potential, as the company expects it to boost its weighted average lease term (WALT) from 4.9 years to 5.6 years, including the potential acquisition of "Aerotech" previously announced.

This step reinforces FIBRA Monterrey's commitment to continue expanding its investment property portfolio, focusing on the quality of assets, tenants, and leases in Mexico's most important industrial markets.

At the end of the fourth quarter of 2023, FIBRA Monterrey demonstrated solid growth and diversification in its portfolio, with 106 properties, 19 for office use, 81 for industrial use, and six for commercial use, covering 1,652,673 square meters of GLA, with an occupancy rate of 96.3%. In addition to its current portfolio, the company has significant potential for growth, as its land reserve reaches 882,723 square meters.

For more information about REIT performance and trends in Mexico's commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.