FIBRA Shop to Expand Portfolio by 13%: Finalizes Acquisition of Three Shopping Centers Valued at $105 Million

FIBRA Shop, the real estate trust specializing in shopping centers, announced the closure of the acquisition of a portfolio of three properties valued at nearly 105 million dollars (or 1,767 billion pesos). This transaction, approved by the trust fund's Corporate Practices and Technical Committee in December 2023, includes the shopping centers Galerias San Juan del Rio in Queretaro, Sentura Tlalnepantla in Mexico City, and Sentura Zamora in Michoacan.

It's important to note that before this transaction, FIBRA Shop already owned 35% of Sentura Tlalnepantla. With this move, the company will complete the acquisition of the remaining 65% at an 8% discounted price from the original, which was about 50 million dollars (812 million pesos). Additionally, on May 22, the trust announced the signing of the deeds to acquire this property.

To execute this strategic acquisition, FIBRA Shop meticulously engaged independent experts to evaluate the properties and determine the transaction's viability. This process, which involved negotiations, agreements, and authorizations, was a testament to our careful planning and commitment to making sound investment decisions. In January of this year, the trust confirmed that the acquisition would be primarily financed through stock certificates (CBFIs) in treasury, implying a capital increase.

This involves the issuance of more than 199.6 million CBFIs for 0.4 dollars (6.50 pesos) per certificate, equivalent to 77 million dollars (1,297 million pesos) and 28 million dollars (470 million pesos) in cash, payable within 24 months. This represents a slight revaluation (4%) of its certificates, whose price at the end of the first quarter of this year was around 6.25 pesos per unit, in a context where, over the last year, the value of the trust's CBFIs rebounded (4%) after several quarters of decline. According to SiiLA FIBRA Analytics, this issuance will increase by 46% the number of CBFIs currently in circulation.

As the Federal Economic Competition Commission (COFECE) has already authorized the transaction, the Galerias San Juan del Rio and Sentura Zamora deeds are also expected to be signed in the coming days.

In a previous edition, SiiLA REsource reported that the acquisition of the three properties will add about 82,500 square meters of gross leasable area (GLA) to the trust's portfolio, which represents a 13% increase in the GLA managed by the trust, which, as of the first quarter of 2024, reported having 17 shopping centers with its own GLA of almost 645,000 square meters.

The acquisition of these three properties is a significant milestone for FIBRA Shop. The stabilized Net Operating Income (NOI) on 100% of the new properties amounts to 13 million dollars (220 million pesos), nearly 50% of the income from our stabilized portfolio as of the first quarter 2024. This substantial increase in NOI will bolster the company's cash flow, enhance its profitability, and potentially lead to higher dividend distributions for its investors. It also validates the effectiveness of the trust fund's business model, based on developing "Life Centers" that attract a diverse range of tenants and customers, thereby boosting its market position. This advance in NOI ensures greater financial stability for the trust and increases its attractiveness for future investments, contributing to sustainable and long-term growth.

For more information on this and other commercial real estate market topics, explore SiiLA REsource or write to us at contacto@siila.com.mx.