Fibra Terrafina, an industrial real estate investment trust in Mexico, revealed the acquisition of a Class A industrial property located in the city of Monterrey, Nuevo León, in an operation valued at $54 million.

This investment was financed with the sidecar vehicle announced on January 12, 2023, which represents a significant step in the expansion and strengthening of the company's portfolio. The property in question covers 548 thousand square feet and is completely stabilized, offering a capitalization rate of 6.8%.

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This asset, used as a Distribution Center (Cedis), supports the nearshoring operations of a multinational tenant, thus consolidating its strategic importance in the logistics landscape.

The financing of this transaction was structured with 60% coming from debt at the asset level, while the remaining 40% was financed through an equitable capital contribution, with 50% borne by each partner involved in the operation.

Terrafina, by concluding this acquisition, has managed to anticipate the allocation of more than half of the capital of the sidecar earlier than initially planned. Additionally, this transaction will increase the company's presence in fast-growing markets, offering attractive returns that will translate into greater value for investors.

A year ago, Fibra reported that it had created a parallel vehicle (sidecar) with an international pension fund that has a long-term relationship with PGIM Real Estate. The sidecar will focus on the acquisition, development, leasing and management of industrial assets located in strategic markets.

Of interest: Solili Industrial Report 4Q 2023, national demand in 2023 contracted 20% compared to 2022

The initial capital committed will be 200 million dollars. Altogether, between $450 and $500 million could be contributed in new investments, without diluting investors and in line with Terrafina's leverage guide.

He added that this will allow them to have a consolidated portfolio in manufacturing activities for export, logistics and distribution in the main markets of Mexico. “We will continue to analyze opportunities that strengthen Terrafina, and most importantly, benefit our stakeholders,” he concluded.

In Solili you can consult industrial warehouses available in Saltillo, Reynosa and Ciudad Juárez

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