MONTERREY, Mexico--(BUSINESS WIRE)--Deutsche Bank México, S.A., Institución de Banca Múltiple, División Fiduciaria F/1616 or Fibra Inn (BMV: FINN13) (“Fibra Inn” or “the Company”), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced the receipt of a Value Added Tax (VAT) refund totaling Ps. 278.4 million. The VAT was paid with relation to the acquisition of the real estate assets from the Contribution Portfolio, which were contributed as part of the creation of the Fibra during the Initial Public Offering, that took place on March 13, 2013. These real estate assets are currently rented by Fibra Inn and are aimed mainly at serving the business traveler.
Pursuant to Mexican tax law, VAT is paid on the acquisition of properties in respect of the value of the construction and improvements of such properties. Depending on the nature of the activities of the relevant taxpayer, the VAT paid can either be:
a. Credited against the taxpayer’s future VAT collections (for example, VAT charged by Fibra Inn in rents of its real estate assets); or
b. A refund may be requested from the tax authorities.
Fibra Inn requested a refund for the VAT paid on the acquisition of its Contribution Portfolio. The Company plans to utilize the refund proceeds to fund future acquisitions.
The refund was processed at the General Administration of Large Taxpayers of Tax Administration Services (“SAT”), the Empowered Organism within the General Assembly of the Ministry of Finance and Public Credit (“SHCP”). The authorities satisfied the request in a legal and timely manner, with the prompt refund in favor of the Company.
Fibra Inn is a Mexican Real Estate Investment Trust formed primarily to acquire, own, develop and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn possesses a high-quality, portfolio of 17 hotels serving the business traveler and are geographically-diverse located in ten states throughout Mexico, comprising 3,126 rooms, including 304 under construction. The Tenant has signed franchise agreements with IHG to operate its global brands: Holiday Inn, Holiday Inn Express and Holiday Inn Express & Suites. Additionally, it has license agreements with Hilton to operate its brand Hampton Inn by Hilton; and is in the process of establishing development agreements with IHG, Marriott International and Wyndham Hotel Group. These hotels enjoy some of the industry’s top loyalty programs and offer attractive hotel options for business travelers. Fibra Inn recently listed its Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange and trades under the ticker symbol “FINN13”.
For more information, please visit: http://fibrainn.mx/en/investors.php.
Note on Forward-Looking Statements
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.