FIBRA Prologis Expands Industrial Property Portfolio in Northern Mexico with $74.9 Million Acquisition

Recently, FIBRA Prologis announced the acquisition of three industrial properties from Prologis in Ciudad Juarez, Monterrey, and Tijuana, for a purchase price of $74.9 million, including closing costs. The properties acquired by the specialized trust in class A logistics real estate have a combined area of 651,258 square feet (or 60,509 square meters). According to SiiLA, this is FIBRA Prologis' first property purchase of 2023. This acquisition is part of the company's strategy to strengthen its presence in the border area between Mexico and the United States in a context of opportunities driven by nearshoring and the expansion of companies at the national level.

Between 2019 and 2022, the gross leasable area (GLA) managed by FIBRA Prologis increased by 28%, and currently, half of its portfolio is concentrated in Northern Mexico, according to data from SiiLA FIBRA Analytics. Before its most recent investment, the trust's last acquisition occurred in November of last year when the REIT acquired two properties in Tijuana, Baja California, representing a total investment of $56.5 million. In 2022 alone, FIBRA Prologis invested approximately $130 million nationwide.

With this year's investment, the trust aims to strengthen its returns and generate added value for its investors. FIBRA Prologis specified that the three recently acquired properties are rented in dollars, further expanding its portfolio of properties with foreign currency rents. According to SiiLA, as of the first quarter of 2023, 65.8% of FIBRA Prologis' income was dollar-denominated. The increase in the portfolio of properties with dollar rents diversifies FIBRA Prologis' monetary investments and reduces exposure to exchange rate risks. Even if the Mexican peso continues to strengthen against the dollar, properties with dollar rents are expected to help offset potential losses in other investment areas.

Regarding return-on-investment expectations, SiiLA Market Analytics data on capitalization rates (cap rates), which calculates a property's expected yield over one year, indicates the possibility of stable investment. This type of indicator is available to our clients on SiiLA's platform.

Among the outstanding FIBRA Prologis' properties in Northern Mexico are the industrial warehouses Prologis Apodaca Park - PPA 8 (Nuevo Leon), Prologis Park El Florido - Florido #2 (Baja California), and Centro Industrial Juarez - FIBRAPL 05 (Chihuahua). These properties add up to over 60,509 square meters occupied by industrial, capital goods, electronics, transportation, and logistics companies, such as Multi-Wings, NAPS, Rogers Foam and FWS Logistics.

Prologis is a US-based company focused on developing properties for logistics and manufacturing, with a portfolio of properties totaling 93 million square meters distributed across 19 countries in America, Asia, and Europe. This company is a sponsor of FIBRA Prologis, which at the end of last year, managed 225 industrial properties in Mexico with a GLA of over 4.2 million square meters.

SiiLA is a leading real estate information platform in Latin America that provides commercial real estate market data. For more details on the composition of FIBRAs portfolios, please refer to FIBRA Analytics. If you are interested in maximizing your investments and making decisions based on accurate and reliable data, we invite you to explore SiiLA's intelligent solutions for institutional investors and FIBRA investors.