FIBRA Macquarie México Completes Acquisition of a Strategically-Positioned Industrial Portfolio

MEXICO CITY--()--FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) announced that it has successfully completed the acquisition of an eight-property industrial portfolio located in Monterrey, Nuevo León, which includes four stabilized properties, two build-to-suit (BTS) development properties and two land parcels. The gross leasable area (GLA) of the portfolio is 40,700 square meters (438,500 square feet), out of which 10,800 square meters (116,300 square feet) correspond to the two BTS development properties. The two land parcels, with a combined surface area of 25,100 square meters (270,500 square feet), are adjacent to other properties owned by FIBRA Macquarie, offering the possibility for expansion by existing tenants.

The portfolio was acquired from Desarrollos Industriales Nexxus for US$24.3 million (approximately Ps.387.5 million) excluding transaction costs and taxes. FIBRA Macquarie will pay additional consideration of US$5.6 million (approximately Ps.89.4 million) for the two BTS projects, in each case subject to development completion and the tenant having taken possession and paid the first month’s rent. The BTS projects are expected to be completed in mid-2016. Assuming completion of both projects, the total purchase price for the portfolio will be US$29.9 million (approximately Ps.476.9 million) excluding transaction costs and taxes.

The four stabilized properties are well-located and 100% occupied by high-quality tenants, including well-known Mexican companies and multinational corporations. 85% of the lease revenue derives from triple net (NNN) leases, under which the tenant is responsible for all of the property operating costs, including property taxes, insurance and maintenance. The acquisition cap rate for the four stabilized properties based on the forward-looking net operating income (NOI) is estimated at 8.5% excluding transaction costs. NOI includes lease-related income and other variable income, less property-operating expenses (including property administration expenses) and is based on a normalized full year of operating the properties. 79% of the contracted rental income for the stabilized properties and BTS projects is denominated in US Dollars.

“We are pleased to complete an acquisition that highlights our disciplined approach to capital deployment,” said Juan Monroy, chief executive officer, FIBRA Macquarie. “The stabilized properties and BTS projects are high-quality, well located in the key industrial market of Monterrey, and leased to first-rate customers. The acquired land parcels also enable us to better address the expansion needs of our existing customers as well as provide BTS solutions for future customers.”

FIBRA Macquarie funded this acquisition with available cash. Transaction costs and taxes totaled approximately US$1.0 million (approximately Ps.15.4 million). With this transaction, and including the acquisition announced on June 22, FIBRA Macquarie’s industrial portfolio will comprise 274 stabilized properties with a combined GLA of 2.9 million square meters (31.7 million square feet), plus two BTS development projects with a combined potential GLA of 10,800 square meters (116,300 square feet).

FIBRA Macquarie will administer the properties through its scalable internal property administration platform, leveraging its ability to integrate new properties without incurring material additional operating expenses.

About FIBRA Macquarie

FIBRA Macquarie México (FIBRA Macquarie) (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. FIBRA Macquarie’s portfolio consists of 264 industrial properties and 17 retail/office properties, located in 24 cities across 19 Mexican states (as of July 23, 2015). Nine of the retail/office properties are held through a 50/50 joint venture with Grupo Frisa. FIBRA Macquarie 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 FIBRA Macquarie, please visit www.mmreit.com.

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 14,000 people and has assets under management of over US$370 billion (as of March 31, 2015).

MIRA is a business within the Macquarie Asset Management 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$100 billion of total assets under management as of December 31, 2014 with more than 400 employees managing 50 listed and unlisted funds worldwide.

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.

Contacts

Investor relations:
FIBRA Macquarie México
Toe Matsumura
Cel: +52 1 (55) 4450 5018
Tel: +52 (55) 9178 7768
toe.matsumura@macquarie.com
or
For press queries:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra
Cel: +52 1 (55) 5105 5907
Tel: +52 (55) 5286 0793
jmsierra@carralsierra.com.mx
or
Diego Arrazola
Cel: +52 1 (55) 3977 2778
Tel: +52 (55) 5286 0793
darrazola@carralsierra.com.mx

Contacts

Investor relations:
FIBRA Macquarie México
Toe Matsumura
Cel: +52 1 (55) 4450 5018
Tel: +52 (55) 9178 7768
toe.matsumura@macquarie.com
or
For press queries:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra
Cel: +52 1 (55) 5105 5907
Tel: +52 (55) 5286 0793
jmsierra@carralsierra.com.mx
or
Diego Arrazola
Cel: +52 1 (55) 3977 2778
Tel: +52 (55) 5286 0793
darrazola@carralsierra.com.mx