FIBRA Prologis Invests $106 Million in the Acquisition of Two Industrial Properties in Mexico, Boosting Its Dollarized Portfolio

FIBRA Prologis, a specialized trust focused on Class A logistics real estate in Mexico, has made a significant move this week by acquiring two industrial properties from Prologis. The acquisition, totaling $106 million, including closing costs, includes properties in Ciudad Juarez and Monterrey.

These properties boast a Gross Leasable Area (GLA) of over 103,800 square meters of industrial space. According to FIBRA Prologis, both facilities are fully leased in dollars. The Ciudad Juarez property, spanning more than 42,700 square meters, is occupied by the American transportation and logistics company EP Logistics. In contrast, the nearly 61,200-square-meter Monterrey property is home to the agro-industrial manufacturing company, The Toro Company.

SiiLA reports that the newly acquired properties by FIBRA Prologis are strategically located in key industrial complexes. One is situated in the Centro Industrial Juarez, just 14 kilometers from the Ysleta-Zaragoza International Bridge on the Mexico-United States border, while the other is in Prologis Apodaca East Park, within the burgeoning submarket of Pesqueria, Nuevo Leon, known for its growth prospects.

Between the third quarter of 2020 and 2023, FIBRA Prologis has witnessed a substantial 13% increase in GLA. Currently, half of its portfolio is concentrated in Northern Mexico, as per SiiLA FIBRA Analytics.

Throughout 2023, the real estate trust has been actively investing in bolstering its presence in the border region between Mexico and the United States, capitalizing on opportunities driven by nearshoring and the expanding national business landscape. With these investments, the REIT aims to enhance returns and deliver added value to its investors.

According to SiiLA, more than two-thirds of FIBRA Prologis' income is dollar-denominated. Exposing its portfolio with dollar-earning properties diversifies its monetary investments and mitigates exposure to currency risks. Even if the peso strengthens against the dollar, these dollar-earning properties are expected to offset potential losses in other investment areas.

As for the return on investment expectations, SiiLA Market Analytics data on the cap rate, a measure of expected property yield over a year, indicates stable investment conditions for the trust. Such indicators are available to our clients on the SiiLA platform.

Prologis, a US-based company, specializes in developing logistics and manufacturing properties and boasts a 93 million square meters portfolio across 19 countries in the Americas, Asia, and Europe. It is a sponsor of FIBRA Prologis, which manages 228 properties and an intermodal yard serving manufacturing and logistics industries in Mexico, with a GLA exceeding 4.2 million square meters.

In its most recent financial report, the REIT reported a remarkable occupancy rate of 98.4% as of September 30, 2023.

SiiLA is a leader in providing commercial real estate information in Latin America. For a detailed breakdown of FIBRA portfolios, refer to FIBRA Analytics. If you're interested in maximizing your investments and making data-driven decisions, we invite you to explore SiiLA's intelligent solutions for institutional and FIBRA investors.