Advance Real Estate, an industrial developer based in Central Mexico, brought in $150 million from an unnamed Canadian pension for their second joint venture, the firm said Wednesday.
The latest investment brings the Canadian pension plan’s total investments in the firm to more than $300 million. Money from the first joint venture, which was formed in July 2014, funded 14 projects, according to the firm.
Equity International, the Chicago-based real estate firm headed by billionaire Sam Zell, also invested an undisclosed sum in some of Advance’s projects in October 2013.
Based in Querétaro, Advance develops and manages Class A industrial real estate, primarily in Mexico’s Bajío region, which has been experiencing significant investment from sectors such as aerospace, electronics and automotive. The region also has benefitted from highly skilled, less costly labor; a more attractive security profile; low vacancy rates; and higher demand for institutional-quality real estate.
Founded in 2007, Advance has invested more than $300 million in various projects throughout the region, including build-to-suit projects for multinational and domestic companies and business parks for small and medium-sized firms. The firm said it plans to continue the same strategy with capital from its second joint venture.
It has developed more than 700,000 square meters (over 7.5 million square feet) of industrial space in central Mexico. The company’s pipeline includes industrial buildings and land acquisitions.