FIBRA Macquarie Mexico, owner of one of the largest portfolios of industrial and retail property in the country, announced today that it has agreed to sell 37 non-strategic industrial assets comprising 2.6 million square feet of gross leasable area (GLA) for US$ 87.4 million in cash.
The transaction is expected to close in mid-2018, subject to satisfaction of customary closing conditions.
“The sale of this portfolio marks a key milestone in our asset recycling program. Upon the close of this transaction we will have sold 44 non-strategic properties, for an equivalent total of US$ 117.5 million at an aggregate 2.2% premium to book value. This is in stark contrast to the substantial discount of FIBRA Macquarie’s certificate price to its intrinsic net asset value, which exceeds 40%,” said Juan Monroy, FIBRA Macquarie’s chief executive officer.
The transaction is fully comprised of non-strategic properties located in Mexico’s northern markets including Matamoros, Reynosa, Ciudad Juarez, Chihuahua, Mexicali and Tijuana.
The operation complements the US$ 30.1 million of asset sales completed to date, which resulted in the complete exit from four tertiary industrial markets: Ascension, La Paz, Durango and Villahermosa.
The sale proceeds million are to be received in three tranches comprising US$ 66.4 million at closing and US$ 12.2 million and US$ 8.8 million to be received 18 months and 24 months following closing, respectively.
The first tranche will initially be used to fully repay FIBRA Macquarie’s drawn revolver of US$ 40.0 million, with the remaining US$ 26.4 million held as unrestricted cash.
The transaction increases FIBRA Macquarie’s total capital available for investment to approximately US$ 300 million, comprised of undrawn revolver facility and cash on hand. All of the sale proceeds are expected to be ultimately re-deployed in accretive investment opportunities, including expansions, developments and certificate repurchases for cancellation.