Investments in Mexico, Fibers the financial instrument novelty among investors.

From three years to the present, the real estate market in Mexico has had an exponential growth, perhaps one of the reasons is the financing that has had the sector through the Infrastructure and Real Estate (Fibers) Trusts that are dedicated to invest in The acquisition, leasing and construction of real estate in the country. These financial instruments capture resources from the investing public through the Mexican Stock Exchange and international markets.

In March 2011, Fibra Uno launched a market for 3,600 million pesos (mdp). In spite of having very little time in the stock market in Mexico, in June 2013, five Fibers - Fibra Uno, Fibra Hotel, Fibra Macquarie, Fibra Inn and Fibra Terrafina - have been structured in a total of eight placements accumulating 72,251 mdp.

Of these placements, Fibra Uno has made three broadcasts, two of these subsequent (Follow-On), Fibra Hotel has held two, while Macquarie has three, Inn and Terrafina have only made one.

What Kindnesses Have Real Estate Fibers?

1.- Act as a fund as they integrate a portfolio of real estate. They are very similar to an equity security because they have capital gains due to the increase in their market price.

2.- The income of said properties are distributed periodically in the form of dividends. Dividends paid for income generation are relatively predictable, making it appear that it is a fixed income instrument.

3.- The revaluation of real estate is reflected in the value of the certificate of real estate participation, made by an equity instrument.

Unlike companies (which place shares in the market) that do not normally return to the BMV, the Fibers do so on a recurring basis because their tax regime states that they must distribute at least as a forced dividend, 95% of Its net profit. That is, they can not grow with retained earnings, they have to distribute them and, therefore, return to the market by capital to fund their growth plans.

New to Real Estate Investors

The director general of Somoza Finamex Juan Musi Amione, said that this type of financial instruments has around 50 years in the United States with the figure of REIT (Real Estate Investment Trust) and although in Mexico only have three, growth and Amounts of the emissions captured have been very favorable for the stock market and real estate of the country.

"Anyone who has the capital can buy the property he wants. The Fibers are an investment vehicle and if you are not an expert, even if you take risks, these are greatly reduced because behind these there are those who know perfectly well what and how to acquire the real estate that are the most convenient, "said Musi.

How Do Fibers Work?

The procedure is simple, since there are of different types; Which are dedicated to mixed uses (commerce and housing), hotels, offices, industrial, the famous turnkey projects that build industrial warehouses and are tied by a lease, which - according to Musi is Very sure because the return of the investment is recovered through the income because it is taken care of who is leased to be transnational companies with a prestige and the liquidity to fulfill the payment. The objective of reducing risks and achieving long-term contracts.

Also the manager said that the outlook for the Fibers in the following years is a significant growth, as the market in Mexico is still very virgin and there is much to be done. The specialization in this type of instrument is very important because that way can be directed to the desired one.

The Fibers From The BMV

According to the Director of Broadcasters and Promotion of the Mexican Stock Exchange, Francisco Valle, the benefit of investing in these instruments is seen immediately, since it allows financing for the acquisition of new real estate assets without taking so many risks.

The investor has two ways of obtaining financing:

1.- The one that is assimilable to the rent because they offer periodic payments.

2 .- The capital gains that are granted in the time period, the instrument and the property.

"Over time you will see the specialization of the fibers, which although they are already diversified, is still a long way from growing this sector," said Francisco Valle.

The future for the Fibers is encouraging because instead of investing all the resources in a single real estate one can acquire several and simplify the risk.