FIBRA Storage Expands Its Presence. Invests 2.2 Million in the Commercial Heart of Monterrey, Mexico

FIBRA Storage, a real estate investment trust (REIT) specializing in developing and leasing self-storage facilities in Mexico, has announced the acquisition of a property in the "Puerta de Hierro" commercial area in Monterrey, Nuevo Leon.

The recent purchase by FIBRA Storage is valued at 44 million pesos, including transaction closing costs. This investment adds to three other recent land and property acquisitions between August and November 2023, totaling nearly 210 million pesos.

FIBRA Storage's investment in Monterrey represents a strategic step in its geographic expansion, strengthening its presence in the Mexican self-storage market. According to SiiLA FIBRA Analytics, about 91% of FIBRA Storage's GLA (Gross Leasable Area) is concentrated in the Mexico City metropolitan area, with the remainder spread across the Mexican Bajio region, mainly in Guadalajara and San Luis Potosi.

By diversifying its portfolio, the REIT is responding to the growing demand for storage solutions in one of the nation's most rapidly expanding commercial real estate markets, enhancing its revenue potential. Last year, Monterrey's industrial market grew by 11%, making it the second-fastest growing region in Mexico after Ciudad Juarez in Chihuahua, which saw a 14% growth. Additionally, according to SiiLA, Monterrey's corporate area experienced the highest national expansion in 2023, with an increase of nearly 3%.

FIBRA Storage's Expansion in Mexico

FIBRA Storage's recent investment reflects a long-term vision that could attract more investors by consolidating a robust and diversified national offering, further driven by the arrival and expansion of companies due to nearshoring.

As of the third quarter of 2023, FIBRA Storage reported having nearly 168,200 square meters of built space. This means the trust's GLA increased by more than 11,500 square meters last year, or about 7%, compared to the GLA at the end of the fourth quarter of 2022.

Currently, FIBRA Storage has plans to develop more than 58,600 square meters, which, once completed, will represent an increase of nearly 35% compared to the GLA at the end of the third quarter of 2023. Five years after its inception, the trust owns 37 properties, with 28 in operation and nine under development, achieving a record occupancy rate of 84.1%, in addition to opening three new branches in 2023 and managing 15 properties with 45,314 square meters operated by third parties.

FIBRA Storage's expansion into Monterrey marks a significant milestone in its growth and geographic diversification journey. This strategic acquisition underscores the trust's ability to capitalize on emerging opportunities and strengthen competition and development in the country's commercial real estate sector.

For more information about the performance of this and other FIBRAs in Mexico, explore SiiLA REsource or contact us at contacto@siila.com.mx.