NEWARK, N.J.--(BUSINESS WIRE)--Prudential Mortgage Capital Company and MetLife Real Estate Investments each provided $88.5 million in first mortgage financing for a total $177 million package to Prologis Mexico Fondo Logistico, a co-investment venture managed by a subsidiary of San Francisco-based Prologis, L.P., for a portfolio of industrial buildings in Mexico. Prudential Mortgage Capital is the commercial mortgage lending business of Prudential Financial Inc. (NYSE: PRU).
Prologis Mexico Fondo Logistico is a venture with Prologis (20%) and several Mexican pension funds (80%), and was one of the first funds created as part of new legislation that allows Mexican Pension funds to invest in Mexican commercial real estate through equities.
The fixed rate package, which consists of a $103 million, five-year tranche and a $74 million, seven-year tranche, is secured by 28 industrial and warehouse distribution buildings with 5.7 million square-feet of usable space. The building portfolio includes properties in Mexico’s leading industrial markets of Mexico City and Guadalajara, as well as Monterrey, and is well leased to a broad mix of multinational and regional tenants.
Frederick van Overbeek, a principal with Prudential Mortgage Capital Company, Elizabeth Velazquez, a director, and Andrei Gog, a junior associate, led the transaction.
“What made this an attractive transaction for Prudential Mortgage Capital Company was that these are high-quality, well-located and well-leased properties. When combined with the strength, experience, and local market expertise of Prologis, this mortgage investment was a very compelling transaction,” said van Overbeek.
“This is one of the first and largest Afores financings in Mexico, and we are pleased to be a part of this pioneering transaction,” added Velazquez.
Prologis, Inc. is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of September 30, 2011, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 600 million square feet (55.7 million square meters) in 22 countries. The company leases modern distribution facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.
Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with $69.5 billion in assets under management and administration as of September 30, 2011. Leveraging a 135-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; Prudential’s general account and proprietary balance sheet program; and other institutional investors. The company maintains a loan servicing portfolio of approximately $66.9 billion, as of September 30, 2011. For more information, please visit http://www.prumortgagecapital.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $871 billion of assets under management as of September 30, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/