FIBRA Prologis Acquires Two Prologis Properties for $120 Million, Adding 105,000 m² to Its Industrial Portfolio in Mexico

FIBRA Prologis has acquired two industrial warehouses from Prologis located in Ciudad Juarez and Reynosa, north of Mexico, adding approximately 105,000 square meters to its class A logistics real estate portfolio in the country. The real estate trust paid $120 million, including closing costs, for these properties.

With this transaction, FIBRA Prologis continues its expansion plans in Mexico. It's worth noting that recently, in addition to other properties in northern Mexico, the trust acquired an industrial park in Monterrey, Nuevo Leon, with an investment of $32.7 million.

According to Luis Gutierrez, CEO of Prologis Mexico, "Although acquisitions and development are taking longer than expected, we have been able to acquire high-quality properties worth $334 million in the most dynamic markets this year, while continuing to create value for our investors."

As of the third quarter of 2023, FIBRA Prologis had 228 logistics and manufacturing buildings across six industrial markets in Mexico, with a gross leasable area (GLA) of 4.1 million square meters. Most of this area is in Mexico City, accounting for 39% of its portfolio, followed by Tijuana, Monterrey, Guadalajara, Reynosa, and Ciudad Juarez at 15%, 14%, 13%, 10%, and 9%, respectively.

During the same period, the trust reported that Prologis, its sponsor company, and FIBRA Prologis had approximately 450,000 square meters in development or pre-stabilized properties, of which 68.6% were leased or pre-leased. According to the trust, this exclusive access to Prologis' development portfolio is a competitive advantage, allowing them to acquire high-quality buildings in their existing markets.

The New FIBRA Prologis Properties

According to data from SiiLA, FIBRA Prologis' new property in Ciudad Juarez, Chihuahua, is in the Industrial Center Juarez, South submarket, and boasts over 50,000 square meters of class A GLA.

The property acquired in Reynosa, Tamaulipas, is in the Villa Florida Industrial Park and offers nearly 55,000 square meters of class A GLA. Currently, the Danish transport and logistics company DSV Global occupies the property.

It's worth noting that both properties are leased in dollars. Additionally, FIBRA Prologis has reported that approximately 67% of its effective rental income comes from global logistics markets such as Mexico City, Guadalajara, and Monterrey, which are highly industrialized and consumption-oriented regions. These markets benefit from their proximity to Mexico's major highways, airports, and rail centers, driving the development of densely populated areas and consistent growth of the middle class.

The remaining effective rental income of FIBRA Prologis comes from regional manufacturing markets, including Ciudad Juarez, Tijuana, and Reynosa, known for their industrial warehouses catering to automotive, electronics, medical, and aerospace industries. These markets benefit from a skilled workforce and proximity to the United States border.

If you want more information about FIBRA Prologis and other FIBRAs in Mexico, please visit SiiLA FIBRA Analytics or contact us at contacto@siila.com.mx.