MEXICO CITY--(BUSINESS WIRE)--Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ) today announced that it has reached an agreement to acquire a 59,200 square meter (637,000 square foot) two-building industrial property located in Monterrey, Nuevo León, from Ridge Property Trust II for US$58.0 million (approximately Ps.849.7 million), excluding transaction costs and taxes. Peso figures are based on an exchange rate of 14.65 Ps/USD.
“We’re pleased to be acquiring a high quality property occupied by a world class tenant that is a leader in its manufacturing sector,” said Jaime Lara, chief executive officer of MMREIT. “We have set aggressive growth goals and we expect to deploy the remaining capital, raised in September 2014, in accretive investments in the industrial, retail and office segments over the next six to nine months.”
The property to be acquired is a six-year-old Class “A” building. The property is 100% leased to a strong credit quality tenant for a remaining lease term of ten years. MMREIT estimates that the US dollar-denominated lease will generate US$5.2 million (approximately Ps.76.2 million) of net operating income (NOI) for 2015 on an annualized basis. Estimated NOI includes forecast rental income, plus maintenance recoveries, minus property operating expenses.
MMREIT will administer this industrial property through its scalable internal property administration platform, leveraging its ability to integrate new properties within its existing operating cost base.
MMREIT will fund the acquisition with available cash. The transaction is expected to close in the first quarter of 2015, subject to satisfaction of conditions that are customary for transactions of this size and type including clearance from the Federal Competition Commission (Comisión Federal De Competencia Económica).
EXPANSIONS UPDATE
MMREIT also announced that it completed three expansions totaling 11,700 square meters (126,000 square feet) during 2014. In addition, MMREIT has also committed to construct two additional expansions, one in Puebla and another in Ciudad Juárez, which will add 7,100 square meters (76,500 square feet) to its industrial portfolio GLA and are scheduled to be complete during the second quarter of 2015. The five expansions represent an aggregate investment of US$9.28 million funded with available cash, and are expected to increase NOI by US$1.12 million.
Upon closing of the two-building industrial acquisition and completion of these expansions, MMREIT's portfolio will comprise 260 industrial and 17 retail and office properties, totaling 3.2 million square meters (34.1 million square feet) of GLA 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 and 17 retail/office properties, located in 24 cities across 19 Mexican states (as of September 30, 2014). Nine of the retail/office properties are held through a 50/50 joint venture with Grupo Frisa. 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.
MIRA is a business within the Macquarie Funds Group division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets. MIRA has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization and investor relationships. Established in 1996, MIRA has approximately US$105 billion of total assets under management as of June 30, 2014 with more than 400 employees managing 50 listed and unlisted funds worldwide.
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 14,100 people and has assets under management of over US$372 billion (as of September 30, 2014).
* All figures are subject to rounding. Any arithmetic inconsistencies are due to rounding.
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.
None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.
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.
THIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA.