ProximityParks Raises Nearly 190 Million Dollars. Plans Investment in Logistics and Last-Mile Warehouses in Mexico

ProximityParks, a company that manages last-mile logistics industrial parks in Mexico, has recently completed the initial closing of its second investment fund. In this initial phase, ProximityParks raised 3,274.5 million Mexican pesos (190 million US dollars). With this latest funding, the capital managed by ProximityParks now exceeds 5,500 million Mexican pesos (320 million US dollars). It is important to note that the company's Fund II will not fully close until next year. 

The company's funds come from national and foreign investors, including some of Mexico's leading pension fund administrators (AFORES). These resources will enable ProximityParks to expand its real estate portfolio further, encompassing over 270,000 square meters spread across Mexico City, Guadalajara, and Monterrey.

The company's primary objective is to provide cutting-edge facilities with sustainable features in high-density residential and commercial areas to generate added value for its investors and clients. According to ProximityParks, their properties are focused on the e-commerce, parcel, and third-party logistics sectors, as they possess specific characteristics for faster, safer, eco-friendly, and profitable deliveries.

ProximityParks' Investment Plans

This year, ProximityParks announced that since 2017, they have invested approximately 3,000 million Mexican pesos (175 million US dollars) to consolidate their 11 industrial parks on a national level. Nevertheless, the company has ambitious expansion plans that extend through 2027.

In May of this year, Jaime Guerrero, CFO and co-founder of ProximityParks, revealed to El Economista that in the next four years, the company plans to invest around 8,000 million Mexican pesos (465 million US dollars) in Mexico's major cities. This move aims to capitalize on the country's growing demand for industrial warehouses.

According to SiiLA, from early 2021, when the nearshoring phenomenon became more prominent in Mexico, until the third quarter of 2023, the demand for industrial warehouses in the major national real estate markets has increased by approximately 40%.

In a scenario where ProximityParks has acknowledged a shortage of land with suitable infrastructure and location for industrial projects, as well as high construction material costs and challenges in permits and procedures to initiate projects, the company has decided to invest in both land for new facilities and the acquisition and conversion of properties, including disused old factories, to transform them into last-mile centers, especially in the Mexico Valley metropolitan area.

ProximityParks' strategy reflects its confidence in the national economy and its ability to adapt to the changing dynamics of the logistics market. These investments will not only strengthen their position in the market but also have the potential to boost economic growth and employment in the country.

If you wish to learn more about these and other commercial real estate investments, explore SiiLA REsource or contact us at contacto@siila.com.mx.