Mexico's federal government is purchasing a parcel of land spanning over 42 hectares, owned by the department store chain "El Puerto de Liverpool" until this year. This land is in Huehuetoca, State of Mexico, and boasts two interconnected industrial warehouses totaling more than 101,000 square meters of gross leasable area, according to SiiLA. These facilities are slated to be transformed into a Federal Center for Storage and Distribution of Health Supplies (Cefedis), to be operated by Birmex, a state-owned company specializing in the production of biologics and distribution of medications.

For this transaction, the federal government will pay over 1,400 million pesos (around 78 USD million), of which, as per the Presidency of the Republic, 10% has already been disbursed, with the remainder to be paid in the first quarter of 2024. In addition to this investment, the federal government plans to allocate around 1,300 million pesos to rehabilitate and adapt the facilities for operational purposes. Furthermore, the federal government's Cefedis is expected to generate annual operating and maintenance costs exceeding 300 million pesos, as reported by various media outlets.

El Puerto de Liverpool facilities are ideal for supplying the federal government's public healthcare systems, such as IMSS and ISSSTE. This is primarily due to their strategic location, situated less than an hour from the Felipe Angeles International Airport (AIFA), and convenient access to central communication and transportation routes.

According to SiiLA data, the CEDIS Liverpool Huehuetoca is El Puerto de Liverpool's facility that the President of Mexico has confirmed as acquired to convert it into a medication distribution center. These facilities are high quality, classified as Class A, and are situated alongside the Tula-Jorobas highway, connecting the states of Mexico and Hidalgo in the Central region of Mexico. This complex, comprising two interconnected warehouses, was delivered in 2003 and operates independently, not being part of an industrial park.

The Huehuetoca industrial submarket experienced a marginal growth of 2% in the past year, adding 12,000 square meters attributed to three industrial warehouses delivered in the Las Americas Industrial Park. Limited inventory supply, space demand, and tenant retention in this region have led to a zero vacancy rate in Huehuetoca throughout 2023.

Huehuetoca's industrial submarket is where consumer goods companies, manufacturers, and utility facilities linked to the public energy sector have established themselves, occupying 34.5%, 25.5%, and 21.4% of the existing space, respectively.

Huehuetoca's strategic location and excellent connectivity make it an extremely attractive destination for companies seeking access to Mexico City and other significant regions in the country. While Huehuetoca remains an appealing submarket for investors and businesses aiming to expand in the central part of the country, it also highlights the need for careful planning and development of new industrial facilities to meet the growing demand in the Mexico City metropolitan area.

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