FIBRA Monterrey is raising funds to acquire the Zeus portfolio

FIBRA Monterrey, a real estate investment trust in Mexico, announced yesterday that it had concluded the first part of a Preferential Subscription, which will allow current stock (or CBFIs) holders to purchase stock at a preferential price before anyone else. The trust expects to raise more than 3.6 billion Mexican pesos from the stock subscription, which will be used to invest in properties and expand its real estate portfolio.

FIBRA Monterrey has assigned 296,383,561 new CBFIs to current holders at 12.20 Mexican pesos per stock, corresponding to 43% of the authorized stocks to be offered during the Preferential Subscription process. It is important to note that the remaining CBFIs can still be assigned and subscribed by any holder or third party who submits an additional manifestation before March 31, 2023.

According to a statement by the trust on February 27, 2023, "the amount raised during the Preference Period was even higher than the Subsequent Capital Issuance conducted on September 13, 2022, demonstrating once again the confidence of investors in FIBRA Monterrey's business model and its ability to capture opportunities in the market."

FIBRA Monterrey plans to acquire the "Zeus" portfolio, consisting of 46 industrial properties with a gross leasable area of more than 822,000 square meters and a cost of over 662 million dollars. The trust's portfolio currently has 60 properties, with the majority of the GLA (almost 76%) used for industrial properties and the remainder used for office (22%) and retail (over 2%) purposes, according to SiiLA Market Analytics at the end of 2022.

The potential acquisition of the Zeus portfolio will result in a debt level of around 35% for FIBRA Monterrey. With the funds obtained through the Preferential Subscription and additional manifestations, the trust plans to reduce its debt level and maintain a balanced capital structure with financial flexibility.

FIBRA Monterrey's CEO, Jorge Avalos Carpinteyro, stated: "in line with our intention to maintain a prudent debt level, we aim to issue capital in the range of 300 to 400 million dollars." The rest of the funds to complete the Zeus portfolio transaction will come from available cash from the capital issuance conducted in 2022 and the hiring of additional debt. The credit will have similar characteristics to the trust's current debt, free of specific guarantees, in dollars, with a single capital repayment at maturity and a term of at least five years.

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