MEXICO CITY, March 25, 2019 /PRNewswire-HISPANIC PR WIRE/ — FIBRA Prologis (BMV: FIBRAPL 14), a leading owner and operator of Class-A industrial real estate in Mexico, today announced it has completed the sale of a portfolio of buildings to a major Mexican institutional investor for USD $62.0 million ($57.73/sqft), net of capital credit for near-term maintenance, in line with December 31, 2018 appraised value ($58.28/sqft).
The portfolio has a 95.7 percent occupancy rate and comprises approximately 1.1 million square feet including:
- Two buildings totaling 423,021 square feet in Guadalajara;
- Three buildings totaling 343,809 square feet in Monterrey;
- One building totaling 139,673 square feet in Nogales;
- One building totaling 95,949 square feet in Querétaro; and
- One building totaling 71,868 square feet in Saltillo
The proceeds from this transaction will be used to pay down our revolving line of credit and was included in our 2019 guidance.
“This disposition further aligns our portfolio with our long-term investment strategy,” said Luis Gutierrez, CEO, Prologis Property Mexico. “Despite the quality of these sold properties, 85 percent of them are related to manufacturing and they are in submarkets where we no longer plan to expand.”
“Buyer interest for quality assets in Mexico is strong,” added Hector Ibarzabal, COO, Prologis Property Mexico. “This transaction highlights the disconnect between valuation in the public and private markets.”
ABOUT FIBRA PROLOGIS
FIBRA Prologis is a leading owner and operator of Class-A industrial real estate in Mexico. As of December 31, 2018, FIBRA Prologis was comprised of 200 logistics and manufacturing facilities in six industrial markets in Mexico totaling 36.0 million square feet (3.3 million square meters) of gross leasable area.
The statements in this release that are not historical facts are forward-looking statements. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which FIBRA Prologis operates, management’s beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact FIBRA Prologis financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, acquisition activity, development activity, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“FIBRA”) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments (viii) environmental uncertainties, including risks of natural disasters, and (ix) those additional factors discussed in reports filed with the “Comisión Nacional Bancaria y de Valores” and the Mexican Stock Exchange by FIBRA Prologis under the heading “Risk Factors.” FIBRA Prologis undertakes no duty to update any forward-looking statements appearing in this release.
Non-Solicitation – Any securities discussed herein or in the accompanying presentations, if any, have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. Any such announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein or in the presentations, if and as applicable.
SOURCE FIBRA Prologis