Top Three Transactions of 2023: FIBRA Prologis Invests 111 Million in Tijuana, Juarez, and Monterrey

The year 2023 has seen three significant industrial real estate transactions in Mexico, noteworthy for their high price per square meter and for collectively generating an economic impact of nearly $111 million. These deals highlight the growing interest in the commercial real estate market amidst a backdrop of historic foreign investments, primarily driven by the nearshoring phenomenon.

The transactions involved the same entities: FIBRA Prologis' acquisition of three Class A properties from its sponsor company, Prologis. These properties are in northern Mexico, specifically in the markets of Tijuana (Baja California), Ciudad Juarez (Chihuahua), and Monterrey (Nuevo Leon).

FIBRA Prologis's property acquisitions reflect its expansion strategy, which is focused on regions near the U.S. border. As of the third quarter of 2023, this real estate investment trust had 228 buildings for logistics and manufacturing use across six industrial markets in Mexico, boasting a Gross Leasable Area (GLA) of 4.1 million square meters. The most significant portion of this area is in Mexico City, accounting for 39% of its portfolio, followed by Tijuana, Monterrey, Guadalajara, Reynosa, and Ciudad Juarez with 15%, 14%, 13%, 10%, and 9%, respectively.

Here are three of 2023's most significant industrial transactions, as reported by SiiLA REsource:

1.- Prologis Park El Florido - Florido 2, Tijuana. In June, Fibra Prologis acquired this over 28,000-square-meter property for a sale price of around $40 million. At the time of purchase, it was fully leased to the U.S. manufacturer North American Production Sharing, which pays rent in U.S. dollars.

2.- Centro Industrial Juarez - FIBRAPL 04, Ciudad Juarez. In December, FIBRA Prologis bought this property, spanning over 50,000 square meters, for approximately $60 million. The building was fully occupied at the time of the transaction.

3.- Prologis Apodaca Park - PPA 8, Monterrey. In June, FIBRA Prologis acquired this 10,000-square-meter space for a sale price of $11.3 million. The property was fully leased in U.S. dollars to the Danish manufacturing company Multi-wing at the time of purchase.

FIBRA Prologis's transactions demonstrate the strength of Mexico's industrial market, attracting institutional investors with both national and foreign capital.

In a context that bodes well for economic growth and investments in Mexico in the coming years, FIBRAs play a crucial role in developing the commercial real estate sector. For more information on this and related topics, explore SiiLA REsource or contact us at contacto@siila.com.mx.