MEXICO CITY-Mexican REIT Terrafina is buying 87 industrial properties from a joint venture of Kimco Realty Corp. and American Industries for $600 million, including the assumption of $306 million in debt. The 87-asset, 11-million-square-foot deal will make Terrafina the largest owner of industrial properties in Mexico, with a portfolio of more than 30 million square feet in the sector.
“The addition of these assets contributes to the diversification of Terrafina’s portfolio in terms of industry location and tenants,” Alberto Chretin, CEO of Terrafina, says in a release. “And it is perfectly aligned to Terrafina’s strategy to grow the portfolio through accretive acquisitions as a consolidator vehicle for quality industrial assets.”
Tenants in the portfolio represent a diverse range of multi-national companies, according to a release. The facilities are predominantly for light manufacturing in the automotive, aerospace and consumer goods sectors, under US dollar-based net leases. “The quality of these properties and the strength of the industrial sector in Mexico made this an extremely attractive transaction,” says Alfonso Munk, head of Latin America at Prudential Real Estate Investors, which advised Terrafina.
Terrafina says it expects to close on the deal in the third quarter. The REIT will pay for the acquisition through existing credit facilities as well as assuming debt.