Mazatlan Real Estate, Industrial land Mazatlan

The Real Estate Investment Trust (Fibra) Terrafina owns one of the largest portfolios of industrial real estate in Mexico. According to Alberto Chretin, its general manager, the area of greatest business opportunity is currently in the spaces for export manufacturing. This momentum will last for industrial land in 2014, Chretin adds. "Next year will be a great opportunity because Mexico will play a determining role as an ideal manufacturing platform for North America. The recovery of the United States, while it is true that it is not as robust as we would like, is a recovery at the end of the day and there is a proven correlation between its economic activity and the manufacturing activity in Mexico. " He also pointed out that even though our country is very competitive in real estate - lease prices are very similar to those in the US, with excellent builders, in addition, the construction price has been maintained for the last 20 years - the country is Finds "at a point of" compressed spring "as to surplus value, since real estate values are at the bottom of the world range." In his opinion, we can expect a very healthy balance between supply and demand, and even a gradual growth in both segments. Terrafina participates in the electronics industry in Tijuana, Juárez and Reynosa, and in the automotive industry with several profiles of automotive companies in the Bajío. According to Chretin, these sectors and the aeronautics sector will be the most developed in 2014. Fibra has a presence in 35 cities in 16 states of the country and an extensive integration of lessees that includes these sectors: automotive, electronic and aeronautical. The company specializes in the acquisition, development, leasing and management of industrial real estate. Originally consisted of 132 properties and 13 lots, however, last October 1st announced the purchase of the industrial properties portfolio of Kimko Realty Corp. and its partner American Industries. At first its real estate developments were of manufacture, mainly maquiladoras or companies of manufacture for export. The other half were logistic and distribution buildings for companies. Last October 1st, the group announced a major purchase of industrial goods. "The portfolio we acquired is almost 100% manufacturing because it was created by American Industries and Kimko with a very important effort to promote investment attraction to their industrial parks. They not only had buildings to offer them when someone arrived, but they went and knocked the door on foreign companies and they said to them: 'They can come to manufacture in Mexico with a maquiladora scheme', they talked about the cost of labor, Of utilities, the entire structure and also rented the building. They are light manufacturing for export in several sectors: automotive, household appliances, electronics and the aviation sector, "said Alberto Chretin. Triplicate growth According to the director, the objectives established by his company as well as the emergence of a good opportunity, resulted in the closing of this transaction that allowed him to expand his portfolio 64%. "The three pillars of Terrafina's growth are acquisitions, land development we have 185 hectares in the lands for industrial real estate developments in Mexico, and the organic growth of our portfolio. We have 20 million square feet with an occupancy of 88%, "he said. As acquisitions became more important, the company planned to buy between three and four million square feet a year, an amount that tripled with the acquisition of 84 Kimko buildings representing 11 million square feet. Chretin explained that Kimko is focused on shopping centers in the US market so that his decision to divest in emerging countries to focus on its territory, coupled with the intervention of Terrafina's external consultant Prudential Real Estate Investors (PREI), resulted in The consolidation of the purchase made for 605 million dollars (mdd). Recycling of assets The manager said that in parallel with his most recent acquisition, Terrafina sold a specialized building to one of its tenants in Monterrey. In your opinion this is a good real estate practice. He said that in a portfolio it is always good to recycle the capital, since this helps to increase its quality, to conform well to the markets where it wishes to participate and, sometimes, to obtain mutual benefits when the client seeks to change its scheme and acquires the Property you rent.