Meor completed the sale of one of its facilities to a Real Estate Investment Trust (FIBRA) in Mexico.

The warehouse, intended for logistics use, is located in the Florido-Boulevard 2000 submarket and has 42 thousand square meters (m2) and 79 thousand m2 of land.

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According to the industrial park developer, this action is an effort to continue its commitment to economic growth and the expansion of companies in Mexico. Meor has a presence in 22 entities in the country and has built nearly 90 projects, maintaining an occupancy of 98%.

According to information from the Mexican Stock Exchange, a FIBRA can grow its property portfolio through two options: development or construction or through a purchase-sale transaction in the market.

Both options increase the value of the company and, consequently, the cash flow for investors. This is known as an accretive acquisition.

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For the purchase of a property to increase cash flows to investors, the Cap Rate (Capitalization Rate) has to exceed its financing cost. The higher the difference, the more accretive the acquisition will be for distributions.

In this regard, Jonathan Pomerantz, CIO of the company, considered that this is the opportune time to capitalize on industrial trends, driven by the growing demand for industrial spaces due to the rise of e-commerce and nearshoring.

“This will further strengthen the REIT's institutional real estate portfolio with tenants of high credit quality,” concluded Javier Camarena, general director of Meor.

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Original note