FIBRA MTY acquires land to expand Huasteco Fagor in SLP

FIBRA Monterrey has completed the acquisition of land to expand its Huasteco Fagor industrial warehouse in the San Luis Potosi industrial market. This marks the second expansion of the warehouse, following one unveiled on December 6, 2019.

The acquisition of the land and the construction required to expand the property will require an estimated investment of $3.24 million. FIBRA Monterrey expects the expansion work to be completed within five months.

FIBRA Monterrey estimates that the expansion will generate an extra net operating income of approximately $327.8 thousand "during the twelve months from the beginning of the additional rent-payment by the tenant," according to a statement from the trust dated February 21, 2023.

The land on which the expansion will take place has an area of 9,767.6 square meters. With this extension, FIBRA Monterrey's property will have an additional 6,732 square meters of gross leasable area (GLA) that will be integrated into the existing triple net lease (NNN) denominated in U.S. dollars.

Huasteco Fagor is in the Tres Naciones Industrial Park II industrial complex, according to SiiLA Market Analytics. It is a Class A property that had a GLA of nearly 14 thousand square meters at the close of 2022. The FIBRA Monterrey property is occupied by ONNERA Group, a company mainly dedicated to commercializing refrigeration equipment.

"The remaining lease agreement term for the entire leased area considering the expansion area contemplates a mandatory term of 10 years to conclude in March 2033. Concerning the expansion area, the lessee will begin to pay rent as of April 1, 2023," the trust's press release states.

FIBRA Monterrey, which began operations on December 11, 2014, specializes in the acquisition, management, development, and operation of its real estate portfolio in the Mexican Republic. As of the third quarter of last year, the company had 60 properties with a GLA of 818,864 square meters.

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