Fibra Prologis plans to acquire 800,000 square meters of industrial warehouses to cater to nearshoring.
The transaction will be financed through debt and investment capital, as the Trust recently completed a $400 million follow-on offering.
Fibra Prologis, a real estate investment trust (REIT), is preparing to acquire a portfolio of industrial warehouses in northern Mexico between 2023 and 2024. The objective is to capitalize on the growing demand for industrial spaces resulting from the relocation of companies, known as nearshoring.
Luis Gutiérrez, President of Fibra Prologis for Latin America, discussed the plans following his participation in "The Real Estate Show 2023" expo. The acquisition will be financed through a recent capital raise, which garnered $400 million.
Gutiérrez explained that part of the acquisition will be financed through investment capital, while the rest will involve debt. The projected investment program is slightly larger, with an estimate of 700,000 to 800,000 square meters of new warehouse spaces between 2023 and 2024.
Fibra Prologis currently owns 225 logistics and manufacturing properties across six industrial markets in Mexico, totaling 4 million square meters of leasable area. With 240 clients already occupying the properties, the available space for new companies stands at only 2%, lower than the typical vacancy rate of 5%.
The demand for industrial warehouses in Fibra Prologis' markets doubled between 2021 and 2022, resulting in a tight market with an average vacancy rate of approximately 1.5%. Gutiérrez highlighted the need to accelerate development plans to meet the growing demand.
Regarding the government's plans for the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT), Gutiérrez expressed interest in the project. Fibra Prologis is considering investment opportunities in the region, but Gutiérrez emphasized that achieving full industrialization will require time.
Factors such as the relocation of companies from China and Taiwan, seeking efficient operations in Mexico, free trade agreements, and existing industrial clusters make the southern-southeastern zone a potential area for growth. Gutiérrez described it as a long-term trend and acknowledged that the development of the Interoceanic Corridor is currently underway, with the impact becoming clearer once the infrastructure is completed.
El Economista. (2023, mayo 26). Fibra Prologis planea adquirir 800,000 metros cuadrados de naves industriales para atender el nearshoring. El Economista. https://www.eleconomista.com.mx/econohabitat/Fibra-Prologis-planea-adquirir-800000-metros-cuadrados-de-naves-industriales-para-atender-el-nearshoring-20230526-0002.html