Macquarie Mexican REIT Completes Acquisition of Retail Portfolio, Joint Venture with Grupo Frisa

MEXICO CITY--()--Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ) today announced that it has completed the acquisition of a 50% interest in a portfolio of nine retail properties and additional land from Kimco Realty Corporation (Kimco) (NYSE:KIM). MMREIT acquired its 50% interest for Ps.1.47 billion (approximately US$113.2 million), excluding VAT, transaction costs and property taxes. An additional payment may be made to Kimco if certain occupancy and rental growth thresholds are met 18 months after closing. US dollar figures are based on an exchange rate of 13.00 Ps/USD.

“The transaction closed today is a great complement to our existing retail portfolio and represents an important opportunity to further create value for our investors,” said Jaime Lara, Chief Executive Officer of MMREIT.

Grupo Frisa (Frisa), a leading Mexican developer and property owner, will own the remaining 50% of the portfolio. Frisa held a blended 31% interest in the properties and has completed the acquisition of an additional blended 19% stake from Kimco at the same price as MMREIT. Frisa will continue to be responsible for the administration of the properties.

The properties total 192,006 square meters (2.1 million square feet) of gross leasable area and the land available for future expansion totals 67,676 square meters (728.5 thousand square feet). Anchor tenants of the portfolio include retailers such as Wal-Mart, Chedraui and H.E.B., as well as Cinemex and Cinepolis theaters. The properties were 90.1% occupied as of February 28, 2014.

MMREIT estimates its interest in the portfolio will generate Ps.122.6 million (approximately US$9.4 million) of net operating income (NOI) and Ps.56.8 million (approximately US$4.4 million) of funds from operations (FFO) in 2014, on a full-year basis. NOI includes forecast rental income, plus maintenance recoveries and parking income, minus property operating expenses (including the property administration fee). FFO is equal to NOI minus corporate general and administrative expenses, debt service and management fees. MMREIT will account for its share of the joint venture using the equity accounting method.

The acquisition of MMREIT’s 50% interest was funded with Ps.577.5 million (US$44.4 million) of senior debt drawn under a new facility led by GE Capital Real Estate Mexico and including HSBC Mexico, S.A., Ps.288.0 million (US$22.2 million) drawn under a new facility with MetLife Mexico and Ps.853.0 million (US$65.6 million) of available cash. VAT, transaction costs and property taxes totaled approximately Ps.246.7 million (US$19.0 million).

Following the closing of the acquisition, MMREIT’s portfolio consists of 259 industrial properties and 17 retail/office properties, totaling 2.7 million square meters (28.5 million square feet) and 445.1 thousand square meters (4.8 million square feet) of gross leasable area across Mexico, respectively.

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 and 17 retail/office properties, located in 24 cities across 19 Mexican states (as of March 28, 2014). MMREIT is managed by Macquarie México Real Estate Management, S.A. de C.V. which operates within the Macquarie Infrastructure and Real Assets division of Macquarie Group. 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 13,900 people and has assets under management of over US$359 billion (as of September 30, 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$106 billion of assets under management across 25 countries (as of September 30, 2013).

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.

Contacts

Investor Relations Contact:
Jay Davis, +1 212-231-1825
Investor Relations, Macquarie Mexican REIT
jay.davis@macquarie.com
or
For international press queries, please contact:
Paula Chirhart, +1 212-231-1239
Corporate Communications, Macquarie Group
paula.chirhart@macquarie.com
or
For press queries in Mexico, please contact:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra
Cel: +52 55 5105 5907
Tel: +52 55 5286 0793
jmsierra@carralsierra.com.mx
or
Andrea Barba
Cel: +52 55 3355 4968
Tel: +52 55 5286 0793
abarba@carralsierra.com.mx

Sharing

Contacts

Investor Relations Contact:
Jay Davis, +1 212-231-1825
Investor Relations, Macquarie Mexican REIT
jay.davis@macquarie.com
or
For international press queries, please contact:
Paula Chirhart, +1 212-231-1239
Corporate Communications, Macquarie Group
paula.chirhart@macquarie.com
or
For press queries in Mexico, please contact:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra
Cel: +52 55 5105 5907
Tel: +52 55 5286 0793
jmsierra@carralsierra.com.mx
or
Andrea Barba
Cel: +52 55 3355 4968
Tel: +52 55 5286 0793
abarba@carralsierra.com.mx