FIBRA Monterrey Successfully Concludes the Acquisition of the Remaining Area of the Zeus Portfolio

FIBRA Monterrey has successfully concluded the acquisition of all properties within the Zeus Portfolio. In a recent statement, the real estate trust announced the completion of the pending property purchases, representing approximately 6.5% of the total portfolio value, roughly $45.3 million before taxes, costs, and corresponding closing expenses.

FIBRA Monterrey also stated that "As agreed by the parties and considering that certain procedures and arrangements related to the properties are still pending, the payment will be made on October 31, 2023." These funds will originate from the remaining cash from the last round of preferred capital subscription, completed in April 2023.

The Zeus Portfolio, acquired by the trust on March 29, comprises 46 industrial buildings located across 11 states in the Mexican Republic, with an approximate gross leasable area (GLA) of 822,052 square meters, as well as a land reserve covering 882,723 square meters. The total purchase price for this portfolio was $662 million before taxes, duties, and closing costs.

FIBRA Monterrey had pending the acquisition of three stabilized properties and most of the land reserve. According to their latest financial report, the first part of the Zeus Portfolio involved a GLA of 780,984 square meters. This implies that the second part of the portfolio encompasses roughly 923,791 square meters.

The trust also noted that, in addition to the closing amount for the second part of the Zeus Portfolio, there were outstanding payments of $62.5 million Mexican pesos corresponding to the closing costs for 93.5% of the portfolio. In this regard, the REIT indicated that, upon completing the second part of the portfolio, the closing costs are estimated at $67 million Mexican pesos (approximately $3.7 million at an average exchange rate of 18 pesos per dollar), including title insurance.

Over the past three years, FIBRA Monterrey has expanded its industrial portfolio, mainly as part of a strategy to leverage nearshoring to Mexico. During this period, FIBRA Monterrey's industrial portfolio GLA increased by 2.6 times. While in the second quarter of 2020, the trust reported having nearly 525,300 square meters of industrial space, equivalent to 74% of its property portfolio, in the second quarter of 2023, it reported just under 1,380,000 square meters of industrial space, representing 86% of its real estate portfolio, according to data analyzed by SiiLA.

FIBRA Monterrey commenced operations on December 11, 2014, and is the first real estate trust 100% managed and advised internally.