FIBRA Macquarie México (FIBRA Macquarie) (BMV: FIBRAMQ) announced the execution of a 510,000 square foot lease for the entire first building of its two-building industrial development project in the strategic logistics corridor of Cuautitlán, in the Mexico City Metropolitan Area. The building will be occupied by a leading e-commerce retailer for fulfillment operations.
The ten-year, triple-net U.S. dollar denominated lease is expected to commence contributing to FIBRA Macquarie’s net operating income during the fourth quarter of 2023. The property is held in a joint venture in which FIBRA Macquarie is expected to hold an approximate 82% equity stake upon completion of landlord works and other relevant milestone payments, up from the 75% equity stake held as of March 31, 2023.
As an added value driver for its investors, FIBRA Macquarie will be the sole beneficiary of development and property administration fees earned from the joint venture vehicle, harnessing the capabilities of its vertically integrated development and property management platform.
“We are excited with the successful lease up of this building and the high-quality green lease that we executed, as it continues our successful development track record,” said Simon Hanna, FIBRA Macquarie’s chief executive officer. “FIBRA Macquarie’s development program is an important element of our long-term growth plans, as we prudently grow our portfolio in strategic high demand locations. We are also excited about our team’s ability to creatively structure projects to access attractive opportunities that achieve attractive returns and add premium assets as well as blue-chip customers to our portfolio. This project is part of the 1.8 million square feet of growth GLA currently in progress being delivered in markets with high demand and low vacancy and which will contribute to per certificate earnings growth in the coming quarters.”
Key transaction features include:
- FIBRA Macquarie’s 82% investment stake for the first building is expected to total approximately US$37.2 million (excluding development fees), with a corresponding projected first year stabilized NOI of approximately US$4.4 million, representing an 11.8% NOI development yield. The delivery of this stabilized building is expected to generate a significant revaluation gain for FIBRA Macquarie.
- FIBRA Macquarie will collect a development fee and recurring property administration fees.
The building is being constructed in accordance with the U.S. Green Building Council’s® LEED® v4.0 Building Design and Construction: Core and Shell Development specifications and is expected to achieve a minimum Gold level certification. In addition, the lease has been executed in accordance with FIBRA Macquarie’s green leasing standards.
The second, 225,000 square foot building is also nearing completion, and enjoys a strong pipeline of lease prospects being evaluated. As of March 31, 2023, FIBRA Macquarie had remaining project milestone payments in respect of both buildings of approximately US$15.0 million.
About FIBRA Macquarie
FIBRA Macquarie México (“FIBRA Macquarie”) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), 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 238 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of March 31, 2023. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.
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