MEXICO CITY--(BUSINESS WIRE)--Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ) today announced it had reached agreement with affiliates of DCT Industrial Trust Inc.® (NYSE: DCT) to acquire a portfolio of 15 industrial properties located across five states in Mexico for US$82.7 million (approximately Ps.1.0 billion)1. Including transaction costs and property tax, the total acquisition value is US$86.3 million (approximately Ps.1.1 billion).
“We are pleased to continue building on our existing industrial portfolio with the addition of these strongly performing, fully occupied properties2,” said Jaime Lara, CEO of MMREIT. “The addition of these properties gives us further penetration into key markets such as Monterrey, an important industrial market in Mexico.”
The portfolio, totaling approximately 1.65 million square feet (153,555 square meters) of gross leasable area, consists of 15 high-quality properties located in Monterrey, Guadalajara, Tijuana, San Luis Potosi and Queretaro. The portfolio is 100% leased and 60% of the properties are located in Monterrey, providing further geographic diversification to MMREIT’s existing portfolio. The properties have an average age of approximately nine years. MMREIT estimates the acquired portfolio will generate US$6.95 million (approximately Ps.87.3 million) of net operating income3.
Upon completion of this transaction and the recently announced acquisition of a six property retail and office portfolio4, MMREIT's portfolio will include 265 industrial, retail, and office properties totaling 30 million square feet (2.8 million square meters) of gross leasable area across Mexico.
TRANSACTION FUNDING
MMREIT expects to fund the acquisition with available cash and existing credit facilities. The transaction is expected to close in the late third or early fourth quarter of 2013.
CLOSING CONDITIONS
Closing of the transaction is subject to closing conditions customary for transactions of this size and type, including clearance from the Federal Competition Commission (Comisión Federal De Competencia).
CONFERENCE CALL
Management of MMREIT will host a conference call with analysts and investors to discuss the acquisition, and the recently announced acquisition of a six property retail and office portfolio, on Wednesday, July 24 at 7:30 a.m. CDT / 8:30 a.m. EDT. The conference call, which will also be webcast, can be accessed online at www.macquarie.com/mmreit or by dialing toll free +1-877-303-6152. Callers from outside the United States may dial +1-678-809-1066. MMREIT will prepare printable materials in support of its presentation. A link to the materials will be available on the MMREIT website the morning of July 24, 2013 prior to the conference call/webcast.
About Macquarie Mexican REIT
Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ) is a real estate investment trust (fideicomiso de inversíon en bienes raices), 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. MMREIT’s portfolio consists of 244 industrial properties located in 21 cities across 15 Mexican states (as of June 30, 2013). For additional information about MMREIT, please visit www.macquarie.com/mmreit.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 13,660 people and has assets under management of over US$362 billion (as of March 31, 2013).
Macquarie Infrastructure and Real Assets, a division of Macquarie, is a leading global alternative asset manager specializing in investments across infrastructure, real estate, agriculture and energy. Macquarie Infrastructure and Real Assets manages 49 funds with US$101 billion of assets under management across 25 countries (as of December 31, 2012).
Cautionary Note Regarding Forward-Looking Statements: This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements.
THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.
1 Excludes VAT, transaction costs and property tax. Exchange
Rate of USD=Ps.12.56
2 As of July 15, 2013
3
Estimated projected NOI; includes forecast rental income plus
maintenance recoveries minus property operating expenses (including
estimated property administration fee) for the period (August 2013 –
July 2014).
4 The acquisition of the six property
portfolio is expected to close in two phases, the first for the five
stabilized properties and the second for City Shops Del Valle following
completion of construction.