TERRAFINA ANNOUNCES US$54 MILLION ACQUISITION OF AN INDUSTRIAL PROPERTY AS PART OF ITS SIDECAR ACTIVITY

terrafina

Mexico City, January 10th, 2024 – Terrafina (“TERRA”) (BMV: TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by PGIM Real Estate and dedicated to the acquisition, development, lease, and management of industrial real estate properties in Mexico, announced today the acquisition of a Class-A industrial property located in Monterrey through its sidecar vehicle. The acquisition implies a total investment of US$54 million, and the addition of a fully stabilized asset with a total GLA of 548,000 square feet, at a 6.8% cap rate. This property is used as a distribution center for a multinational tenant supporting nearshoring activity.

60% of this transaction was financed with asset-level debt, while the remaining 40% came from a 50% capital contribution from each partner.

As a result of this acquisition, Terrafina will i) have allocated more than half of the sidecar’s capital ahead of schedule, and ii) increased its presence in fast growing markets with attractive returns. This will unlock value to investors as new GLA is added to the portfolio without dilutive effects.

Alberto Chretin, Terrafina’s CEO, commented: “I am pleased to announce this new acquisition through our sidecar, which has now deployed 70% of its total fire power. We are focused on integrating the best industrial properties, mainly located in the North and Central regions of the country, which will allow us to have a consolidated portfolio in manufacturing for export, logistics, and distribution activities in Mexico’s main markets. We will continue to analyze opportunities that strengthen Terrafina, and more importantly, benefit our stakeholders.” 

 

Miranda Newswire: Full Press Release – Download PDF


Investor Relations Contact Details

Francisco Martinez
Investor Relations Officer
Tel: +52 (55) 5279-8107
E-mail: francisco.martinez@terrafina.mx

Marimar Torreblanca
Miranda IR
Tel: +52 (55) 5282-2992
E-mail: marimar.torreblanca@miranda-newswire.com

 

About TERRAFINA

Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease and manage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically located warehouses and other light manufacturing properties throughout the Central, Bajio and Northern regions of Mexico. It is internally managed by highly qualified industry specialists and externally advised by PGIM Real Estate.
Terrafina owns 290 real estate properties, including 286 developed industrial facilities with a collective GLA of approximately 42.1 million square feet and four land reserve parcels, designed to preserve the organic growth capability of the portfolio. Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stable distributions and capital appreciations. Terrafina aims to achieve this objective through a successful performance of its industrial real estate and complementary properties, strategic acquisitions, access to a high level of institutional support, and an effective management and corporate governance structure. For more information, please visit www.terrafina.mx/en/
About PGIM Real Estate
With $208 billion in gross assets under management and administration ($131 billion net),1 PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum.
PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,2 and the local experience of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that strive to ignite positive environmental and social impact, while pursuing activities that seek to strengthen communities around the world. For more information visit pgimrealestate.com.
1 As of September 30, 2023; AUA is $49 billion; $131 billion AUM.
2 Includes legacy lending through PGIM’s parent company, PFI.
About PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), a leading global investment manager with more than $1.4 trillion in assets under management as of September. 30, 2023. With offices in 18 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com
Forward Looking Statements
This document may include forward-looking statements that may imply risks and uncertainties. Terms such as “estimate”, “project”, “plan”, “believe”, “expect”, “anticipate”, “intend”, and other similar expressions could be construed as previsions or estimates. Terrafina warns readers that declarations and estimates mentioned in this document or realized by Terrafina’s management imply risks and uncertainties that could change in function of various factors that are out of Terrafina’s control. Future expectations reflect Terrafina’s judgment at the date of this document. Terrafina reserves the right or obligation to update the information contained in this document or derived from this document. Past or present performance does not guarantee future performance.

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