Property group AMB is raising a MXN3.3 billion (€187 million; $256 million) fund on the Mexican stock exchange which will seek to acquire an industrial portfolio across Mexico. HSBC Mexico has been mandated as fiduciary for the transaction.
The vehicle will especially focus on acquiring logistics platforms in Mexico City, Guadalajara and Monterrey – the country’s three biggest cities – and in other cities where AMB is already present, such as Tijuana, Reynosa, Toluca and Querétaro. AMB says it has identified a demand for logistics platforms in these markets and intends to capitalise on Mexico’s proximity to the US.
It should be fully invested in four years’ time, the prospectus reads, and is expected to have an eight-year life-cycle, with full divestments being made in its last two years. AMB is targeting an internal rate of return of between 13 percent and 16 percent for the new vehicle. It also says that the AMB Group should invest alongside the new vehicle taking 20 percent of the total value of a targeted project.
AMB’s new vehicle is also interested in acquiring, financing, developing, maintaining, operating, managing, renovating and expanding industrial distribution properties and industrial buildings in Mexico, the group said in its prospectus to the stock exchange.
AMB has been present in Mexico for two years though its partners have been in the country for over 20 years. It has an industrial portfolio in Mexico comprising close to eight million square feet.