Prologis has exited the bulk of its Mexican private portfolio, including all of its remaining private equity real estate investments in the country. Those assets now are being held by Fibra Prologis, a new Mexican real estate investment trust that completed its initial public offering this week.
Fibra Prologis raised nearly MXP 7 billion ($541.1 billion) through its IPO, which comprised 258 million real estate trust certifications including an international placement of more than 158 million and a domestic offering of nearly 100 million. Following the IPO, Prologis owns approximately 48 percent of the Fibra.
The REIT’s assets total 29.7 million square feet and include 177 logistics and manufacturing facilities in Mexico – nearly all of Prologis’ real estate holdings in the country. As of March 31, Prologis had owned one of the largest industrial portfolios in the Latin American nation, comprising 193 facilities and 781 acres of developable land.
Fibra Prologis’ portfolio includes the company’s wholly-owned Mexican properties as well as assets from the former Prologis MX Industrial Fund and Prologis Mexico Fondo Logistico. Going forward, the REIT has a right of first refusal on stabilized properties that Prologis develops in Mexico and also can acquire assets from third parties.
The MX Fund was a vintage 2007 vehicle for which Prologis raised $625 million of equity from nine institutional investors, and it was seeded with a portfolio of stabilized Mexican assets totaling approximately 3.8 million square feet. Mexico Fondo Logistico was a co-investment venture that Prologis formed through an offering on the Mexican Stock Exchange in 2010. That vehicle targeted Mexico’s pension plans, known locally as Afores, and invested exclusively in Mexican real estate.