MEXICO CITY-AMB Property Corp. has created a new fund to acquire and develop industrial properties in major markets in this country. AMB Mexico Fondo Logistico, predominantly sponsored by private Mexican pension plans, raised $260 million, and AMB will contribute another $65 million.

After eight years in the country, the firm has almost 10 million square feet of industrial properties. Eugene Reilly, Americas president for AMB, says it is safe to bet on a need for more distribution facilities.

“The driver of demand is a rapidly growing consumer class,” he tells GlobeSt.com. “In the recent downturn, the Mexico GDP was hit more severely than the US, but the country is bouncing back faster than the US. Even the fluctuation in the currency rates has made manufacturing more viable here. With our planned distribution centers, we are helping these companies meet consumer need, and that’s why there’s legs on this market as compared to a mature US market.”

Reilly says one troubling issue, drug gang crime, is being handled effectively by the government. “This will be a long period of conflict, but the current administration is making progress. As it relates to safety, the violence is primarily limited to border towns, and we’ve generally avoided investing in those markets. Our primary markets are here, Guadalajara and Monterrey,” he says.