MEXICO CITY--(BUSINESS WIRE)--Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ) today announced that it has completed its acquisition of 15 industrial properties from affiliates of DCT Industrial Trust Inc.® (DCT) (NYSE:DCT) for US$82.7 million (approximately Ps.1.1 billion)1. Including transaction costs and property tax, the total acquisition value is US$86.2 million (approximately Ps.1.1 billion).
The portfolio, totaling approximately 1.65 million square feet (153,555 square meters) of gross leasable area, consists of high-quality properties located in Monterrey, Guadalajara, Tijuana, San Luis Potosí and Querétaro. MMREIT estimates the portfolio will generate approximately US$6.95 million (Ps.90.7 million) of net operating income (NOI)2.
The transaction was funded with US$41.3 million of senior debt drawn under existing facilities with GE Capital Real Estate México, US$10.7 million drawn under a fund-level VAT facility with Macquarie Bank Limited and US$44.9 million of available cash.
“We're pleased to have reached financial close on the first of the three transactions we entered into during the summer. This particular acquisition is expected to generate approximately Ps.0.115 (approximately US$0.009) per CBFI of incremental funds from operations (FFO)3 in 2014. We expect that the three transactions together will generate incremental funds from operations in a range of between Ps.0.48 and Ps.0.52 (approximately US$0.037 and US$0.040) per CBFI on an annualized basis when closed,” said Jaime Lara, Chief Executive Officer, MMREIT.
Lara noted that the acquisitions announced to date, including the transaction with DCT, are expected to produce incremental FFO of approximately US$24.0 million (approximately Ps.313.2 million) on an annualized basis when closed.
Following the acquisition, MMREIT's portfolio consists of 259 industrial properties totaling 28.5 million square feet (2.6 million square meters) of gross leasable area across Mexico.
About Macquarie Mexican REIT
Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ) is a real estate investment trust (fideicomiso de inversíon en bienes raices), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. MMREIT’s portfolio consists of 259 industrial properties located in 21 cities across 15 Mexican states (as of October 17, 2013). For additional information about MMREIT, please visit www.macquarie.com/mmreit.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 13,660 people and has assets under management of over US$362 billion (as of March 31, 2013).
Macquarie Infrastructure and Real Assets, a division of Macquarie, is a leading global alternative asset manager specializing in investments across infrastructure, real estate, agriculture and energy. Macquarie Infrastructure and Real Assets manages 49 funds with US$101 billion of assets under management across 25 countries (as of December 31, 2012).
Cautionary Note Regarding Forward-Looking Statements: This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements.
THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.
1 Excludes VAT, transaction costs and property tax. Exchange Rate of USD=Ps.13.05
2 Estimated projected NOI; includes forecast rental income plus maintenance recoveries minus property operating expenses (including estimated property administration fee) for the period (August 2013 – July 2014).
3 FFO is equal to NOI minus corporate G&A, debt service and management fee