Logistics real estate operator Prologis Inc. announced its affiliate Fibra Prologis has acquired a majority stake in Mexican real estate investment trust Fibra Terrafina. The company now has a 77.14% stake in Fibra Terrafina, which is listed on Mexico’s primary stock exchange with a $1.5 billion market capitalization.
Fibra Terrafina (TERRA13.MX) manages 42.2 million square feet of space – 288 warehouses and four land bank properties – in Mexico.
“This investment comes at a unique moment for Mexico, and it demonstrates our long-standing commitment to one of our most important markets,” said Prologis President Dan Letter in a news release. “We appreciate the vote of confidence by Terrafina’s stakeholders in the quality, sustainability and global connectivity of FIBRA Prologis’ logistics portfolio and in our shared future success.”
Fibra Prologis’ portfolio included 236 logistics and manufacturing locations, or 46.9 million square feet of leasable space, as of June 30. About 70% of the sites are located in consumer markets with the remainder in manufacturing zones.
Other suitors including Blackstone (NYSE: BX) and an affiliate of Macquarie Asset Management (MQG.AX) were rumored to be in the running for a stake in the REIT.
“Our company’s scale, operational expertise and investments provide an excellent platform to drive FIBRA Prologis and Terrafina’s business growth and shared success while strengthening Mexico’s economic prospects and position as an international trade partner,” said Fibra Prologis CEO Hector Ibarzabal.
Prologis (NYSE: PLD) said space managed by its Mexican affiliate is nearly 100% occupied. It expects rents in Latin America to increase at twice the rate of the global average. It estimates that every $1 billion invested in auto factories in Mexico generates roughly 5 million to 10 million square feet of demand for logistics space.
Prologis’ portfolio includes 1.2 billion square feet in 19 countries.
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