Issue 68 Prudential Real Estate Investors

Partnerships with O´Donnell, Amistad, American Industries, BTS Development and RSMG

MEXICONOW Staff Report

Prudential Real Estate Investors is the real estate investment management business of Prudential Financial, Inc. PREI®’s and has been investing in Latin America since 2002. Currently it manages different funds targeting industrial, residential and retail opportunities in Mexico, including the recently launched FIBRA Terrafina.

PREI has been active in Mexico since 2003. Since then, PREI has developed successful partnerships with strong, local developers in order to reach operational synergies, added value and superior investment execution.

“Our partners,” Rodrigo Meza, Portfolio Manager of the Industrial Program of PREI Latin America pointed out, “American Industries, Amistad, BTS Development, O’Donnell, and RMSG are strong local players that have developed deep real estate expertise and outstanding local knowledge. We are proud of managing almost 31 million square feet of industrial space together with the best developers in Mexico. ” 

AMISTAD GLOBAL DEVELOPERS

Claudio Ramon, President of Amistad Global Developers, expressed it this way: “Our integrated services include real estate development, site selection analysis and acquisitions of industrial property in Mexico. We have the experience to help a multinational to establish their business in Mexico”

Claudio F. Ramon is the President of Amistad Global Developers. He said: “Amistad created a strategic alliance with Prudential Real Estate Investors seven years ago. This alliance has provided a powerful platform that allows our clients to benefit from our vast market experience and potential when leasing, buying, selling and managing industrial facilities nationwide. This alliance has fortified our position in the development and acquisition of industrial real estate in the country. During these seven years, Amistad and PREI have built over 4.5 million sq.ft. together and are now in the process of developing several more state-of-the-art industrial buildings.”

“Our 2014 strategy” said the President of Amistad “is to continue to offer the flexibility to customize our services to suit our clients’ needs by offering a comprehensive package in real estate, construction and manufacturing areas. We will satisfy existing client’s needs so that they can become repeat clients in the short term. We will continue to provide leading-edge construction services for large and small projects”. 

RSMG

Pablo Culebro is the General Manager of Real Estate and Management Service Group, RMSG. “We work very close with our customers to satisfy their space requirements, developing new facilities, inventory and BTS, while helping them maintain their assets in excellent condition.”

“We have been working with PREI for over eight years now”, said Pablo Culebro. “We have a very good relationship based upon trust and respect, backed up by an excellent proven record. We feel very good being a partner with them and expect to continue and expand this relationship in the future,” he said.

In regards of this year 2014, Pablo Culebro stated: “We will continue with the same formula used during 2013. Invest in land reserves, develop inventory facilities according to market demands and expand our regional offices. We will put more emphasis in green buildings to minimize our environmental impact and have facilities that help our clients to have energy efficient operations.”

BTS DEVELOPMENT

David Ruiz is the CEO at BTS Development. He told MexicoNOW: “We are an industrial real estate developer. This means we participate in the complete chain of events in a development. We focus on projects such as acquisitions of industrial land lots and acquisitions of income producing assets. We also develop industrial projects for lease with speculative buildings for the highest requirements in the market and in addition we do built-to-suit projects for the most demanding customers. Finally, we offer companies the option of a sale and leaseback transaction.”

According to David Ruiz, “The joint venture allows BTS Development to allocate resources from PREI’s third Mexican industrial investment fund (PRUMEX III) and open investor grade industrial projects throughout Mexico.

BTS Development has ambitious plans for this year. “For 2014, BTS Development will continue with the development of its current projects in order to consolidate its presence in the Cuautitlán-Tultitlán-Tepotzotlán (CTT) industrial market. BTS Development will also continue analyzing new opportunities in the major markets of industrial development in Mexico, such as: Mexico City, Toluca, Bajio, Monterrey and Guadalajara.” 

AMERICAN INDUSTRIES

Mario Marquez is the Real Estate Manager of American Industries. He explained it like this. “At this time we are focusing on the administration of the prestigious Terrafina portfolio.”

“Our relationship is for property management of the portfolio that we sold to PREI and we see opportunities for further developments working together,” observed Mario Marquez. “For us,” he said, “a partnership with a company like Prudential, with over 100 years of experience, helps us to better position American Industries by having this interesting synergy. It comes into play exactly where we add experience to the management of the buildings.” 

O´DONNELL

David O’Donnell is the founder and CEO of O’Donnell – Mexico. He proudly pointed that his company is a service provider doing asset management, marketing, as well as construction and property management.

David O´Donnell continued to explain: “Prudential is an exceptional partner. We developed and manage a portfolio of industrial properties totaling 12.5 sq. ft. This includes 79 properties in 15 markets throughout Mexico. We actively manage the properties offering asset management, marketing, construction management and property management services.”

O’Donnell had a solid year in 2013. Our partnership with Prudential offers exceptional advantages to the industrial development of Mexico. “We execute quite well in all aspects of the business. Furthermore, we work diligently to satisfy our company’s mission, which is to improve our client’s competitiveness through Exceptional Customer Service, Strategic Locations, Quality Industrial Developments, Experienced and Reliable Management and Competitive Pricing.”

“Next year,” David O´Donnell said, “…we plan to initiate two to three more industrial parks, build speculative buildings, as well as do build-to-suits in line with supply and demand. We also plan to acquire properties that require additional value creation,” he added.

CONCLUSION

The combination of strong local developers together with PREI’s institutional global portfolio management translates into a powerful formula of success for the benefit of their clients. In the upcoming years, Prudential Real Estate Investors will consolidate their presence in major industrial markets while increasing their presence in future expanding markets by taking advantage of their partner’s network and local presence.