Fibra Uno in Talks to Buy Mexican Industrial Parks for $850 Million
Fibra Uno in Talks to Buy Mexican Industrial Parks for $850 Million
(Bloomberg) -- Fibra Uno Administracion SA, Mexico’s biggest real estate investment trust, is close to a deal to pay $850 million for industrial parks in what could be the industry’s largest transaction in the country this year, according to two people with knowledge of the matter.
Fibra Uno is in advanced talks to buy the properties from Finsack 12, a Mexican development equity certificate, the people said. Fibra Uno plans to use some debt it already raised to fund the acquisition, according to the people, who asked not to be identified because the negotiations are private.
“There’s no binding offer to report at the moment,” Fibra Uno spokesman Francisco Galindo said in an email. The REIT “is always open to evaluating new investment options.”
A representative for Invex Controladora SAB, the fiduciary for the Finsack 12 certificates, declined to comment.
The negotiations come as the trade war between the U.S. and China makes Mexico more attractive to some manufacturers. Factories stand to benefit while other sectors of the economy have stalled amid a shift in policies under President Andres Manuel Lopez Obrador. Mexico’s central bank expects the economy to grow 0.2% to 0.7% this year, down from an earlier estimate of 0.8% to 1.8%.
Fibra Uno shares have gained about 18% since Aug. 15, when the central bank lowered interest rates for the first time in five years and stoked bets of further cuts, which would reduce financing costs for REITs.
--With assistance from Michelle F. Davis.
To contact the reporters on this story: Gillian Tan in New York at gtan129@bloomberg.net;Michael O'Boyle in Mexico City at moboyle7@bloomberg.net;Andrea Navarro in Mexico City at anavarro30@bloomberg.net
To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Christine Maurus, Rob Urban
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