FIBRA Monterrey seeks to raise up to 7,810.4 million pesos (about 467.9 million dollars) through a subsequent capital issuance on the Mexican Stock Exchange (BMV) on March 15 to acquire industrial and corporate real estate.

The subsequent issuance of the real estate investment trust (REIT or FIBRA) saw significant participation from international investors, who accounted for 56% of the funds raised, with demand exceeding the offer by 1.9 times. The expansion of the investor base and the diversification of financing sources were made possible because, for the first time in its history, FIBRA Monterrey conducted a simultaneous private international offering in the United States and other countries. This offering was directed at qualified investors, complying with Rule 144A and Regulation S of the United States Securities Act of 1933.

In this issuance, 679,166,667 real estate investment trust certificates (CBFIs) were sold for 11.50 pesos (around 0.69 dollars) each, increasing the total number of CBFIs in circulation for the trust to 2,493,497,510.

It is important to note that after the offering, FIBRA Monterrey established a stabilization period of up to 30 days, during which the placing intermediaries may over-allocate up to 88,586,956 additional CBFIs. If this over-allocation option is fully exercised, the net funds raised by the offer could increase to approximately 7,551.9 million pesos (about 452.4 million dollars) after deducting commissions and expenses. However, before considering the possible over-allocation, the net funds raised are estimated to be around 6,563.8 million pesos (around 393.2 million dollars), reflecting the costs associated with the initial issuance and placement of the CBFIs. This initial net amount is less than the potential gross amount of 7,810.4 million pesos (about 467.9 million dollars), representing the total that could be raised if all offered CBFIs, including the additional ones from the over-allocation, are sold.

The company's operation involved Citigroup, BTG Pactual, and Goldman Sachs, which acted as global coordinators for the offer. At the same time, Barclays, Bank of America, J.P. Morgan, Santander, Scotiabank, Actinver, and Banorte served as placing intermediaries. This offer was made under FIBRA Monterrey's CBFIs and long-term real estate investment trust certificates (CEBUREs) placement program, authorized by the National Banking and Securities Commission (CNBV) for up to 20,000 million pesos (nearly 1,198.1 million dollars).

According to the trust fund, this is the seventh occasion that FIBRA Monterrey has successfully accessed the capital market, including the Initial Public Offering, making it the company with the most capital issuances in the country in the last decade.

This issuance is expected to strengthen FIBRA Monterrey's capital structure and allow it to continue expanding its property portfolio in Mexico. 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 Gross Leasable Area (GLA) and 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 now, the trust has already announced industrial expansions with an estimated total value of almost 100 million dollars and capitalization rates above 9%. Of this total, 45 million dollars are already signed and under construction, 19 million dollars are in the final negotiation phase, and the rest are in the initial stage. If all expansion projects are completed, FIBRA Monterrey's industrial portfolio will experience a significant increase of more than 100,000 square meters, of which approximately 18.3 thousand are already under construction.

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