FIBRA Prologis Boosts Its Logistics Network with $5.9 Million Industrial Warehouse Purchase in Mexico City

FIBRA Prologis, a real estate investment trust (REIT or FIBRA) specializing in industrial and logistics properties in Mexico, has acquired its fifth property in the Azcapotzalco district of Mexico City for $5.9 million. The property, known as "Vallejo DC #4," spans nearly 4,700 square meters of gross leasable area (GLA) and is currently occupied by Eaton. This leading energy management company will remain on the premises for a year while the trust undertakes remodeling.

Once the remodeling is complete, Eaton will vacate the premises, allowing FIBRA Prologis to market the renovated space. This acquisition and renovation strategy reflects FIBRA Prologis's focus on optimizing its portfolio and enhancing properties to attract and retain high-caliber tenants.

As of March 31, 2024, the company owned 236 logistics and manufacturing facilities in six strategic markets nationwide, covering approximately 4.4 million square meters of GLA.

According to SiiLA FIBRA Analytics, "Vallejo DC #4" is part of FIBRA Prologis's "Last Touch" portfolio in Mexico City. This portfolio consists of strategically located distribution centers designed to facilitate quick and efficient deliveries to densely populated areas. Overall, this portfolio includes more than 59,700 square meters of GLA and an investment of close to $53 million.

Between 2021 and 2022, FIBRA Prologis invested more than $35.1 million to acquire four Class B industrial buildings in Vallejo. According to SiiLA, Vallejo's "Last Touch" portfolio is 100% occupied. By the end of 2023, these properties were fully occupied with the arrival of GRISI and Grupo Industrial LM to the "DC1" and "DC3" buildings, respectively.

It is important to note that FIBRA Prologis specializes in the acquisition and long-term leasing of logistics properties in Mexico. Its primary source of properties is Prologis, the developer and operator of industrial assets, which also serves as its sponsor. Additionally, the trust acquires third-party properties with the approval of the FIBRA Prologis Technical Committee. By the first quarter of 2024, both companies managed about 344,000 square meters under development or stabilization, of which 48.9% were already leased or pre-leased.

Over the last year, the trust's portfolio grew from 225 to 236 properties, increasing its GLA from just over four to nearly 4.4 million square meters. The recent acquisitions by the real estate trust strengthen its presence in key logistical zones—such as Azcapotzalco—and enhance its expansion strategy in the Mexican market.

For more information on the development and trends related to institutional investors in Mexico, explore SiiLA REsource or contact us at contacto@siila.com.mx.