Macquarie Mexican Picks Up Two Retail Properties

MEXICO CITY—Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ)has completed its acquisition of two retail properties located in the Mexico City Metropolitan Area (MCMA) from companies controlled by Fondo Comercial Mexicano for around 153 million (Ps.2.0B). Including transaction costs and property tax, the total acquisition value is around $158 million (Ps.2.1B).

The properties, Coacalco Power Center and Tecamac Power Center, have a combined 134,246 square meters (approximately 1.45 million square feet) of gross leasable area and an occupancy rate of 98.7% (as of October 31, 2013).

MMREIT estimates the portfolio will generate about $12.8 million (Ps.166.8 M) of net operating income (NOI) and around $7.1 million (Ps.93.3M) million of funds from operations (FFO) in 2014. Estimated projected NOI includes forecast rental income plus maintenance recoveries and parking income, minus property operating expenses (including the estimated property administration fee) for the full year 2014. FFO is equal to NOI minus corporate general and administrative expenses, debt service and management fees.

“As I noted previously, this acquisition is consistent with our strategy of diversifying our portfolio across Mexico's growing retail sector,” said Jaime Lara, CEO of MMREIT. “We are excited about the long-term growth potential this acquisition provides as these properties are high quality, strategically located and occupied by strong anchor tenants. We believe these two properties are well-positioned to benefit from growth in Mexico's middle class, which is driving retail and consumer spending across the country.”