FIBRA Terrafina Expands Portfolio with Two Industrial Properties in Northern Mexico

Recently, FIBRA Terrafina announced the development of two Class A industrial properties in Apodaca, in northern Mexico, in Nuevo Leon. These properties will add 336,000 square feet to the trust fund's real estate portfolio. The primary objective of these developments is to cater to nearshoring tenants and strengthen the presence of the real estate trust in northern Mexico. According to SiiLA FIBRA Analytics data, FIBRA Terrafina currently holds over 64% of the gross leasable area (GLA) of its portfolio in this region.

The new industrial properties will be developed within one of FIBRA Terrafina's land reserves. Currently, the trust possesses four land reserves covering 4.1 million square feet, with a total value of $25.1 million. It is worth noting that although the majority (66%) of the trust's land reserves are in central Mexico, the most valuable lands are in the northern region.

SiiLA's analysis of FIBRA Terrafina's data indicates that proportionally, the square foot of land in Terrafina's northern properties is valued at nearly $14, while the square foot in central Mexico is priced at just over $3. This discrepancy explains why Terrafina prioritizes industrial development in regions like Monterrey and highlights the return prospects they anticipate from these investments.

FIBRA Terrafina expects the cash-on-cash return to range between 13% and 14%, assuming the current average market rent. The incremental return on investment is a profitability rate that calculates cash income earned on the cash invested in a property.

The buildings developed in Apodaca will meet LEED certification standards to reinforce FIBRA Terrafina's ESG (Environmental, Social, and Governance) strategy and provide added value to investors.

These new additions will contribute to Terrafina's existing portfolio of 281 properties nationwide, further strengthening the company's presence in Apodaca. Currently, Terrafina has 280,000 square feet of constructed space in the area, accounting for 0.7% of its real estate portfolio's GLA.

SiiLA will continue to monitor the performance of FIBRA Terrafina. For more information about the performance and portfolios of FIBRAs in Mexico, visit FIBRA Analytics or contact us at contacto@siila.com.mx.