Terrafina, TERRA13, a Mexican real estate investment trust (FIBRA) advised by Prudential Real Estate Investors, will purchase a portfolio of Mexican industrial properties from Kimco Realty and its joint venture partner, American Industries for about $600 million, the company announced today. PREI is the real estate investment management and advisory business of Prudential Financial.
“The addition of these assets contributes to the diversification of Terrafina’s portfolio in terms of industry location and tenants”
The portfolio consists of 87 properties totaling about 11 million square feet that are occupied by a diverse range of multi-national tenants. The facilities are predominantly for light manufacturing in the automotive, aerospace and consumer goods sectors.
“The addition of these assets contributes to the diversification of Terrafina’s portfolio in terms of industry location and tenants,” said Alberto Chretin, CEO of Terrafina. “And it is perfectly aligned to Terrafina’s strategy to grow the portfolio through accretive acquisitions as a consolidator vehicle for quality industrial assets.”
With the addition of this portfolio, Terrafina grows to 233 properties with more than 30 million square feet of industrial space, making it the largest owner of industrial assets in Mexico, based on gross leasable area (GLA).
“This acquisition establishes Prudential Real Estate Investors’ ability to source quality properties and integrate them into Terrafina’s existing portfolio,” said Alfonso Munk, PREI’s head of Latin America. “The quality of these properties and the strength of the industrial sector in Mexico made this an extremely attractive transaction.”
Closing is subject to shareholder approval. Terrafina, which expects the transaction to be completed by the third quarter of 2013, will pay for the portfolio through existing credit facilities and the assumption of the existing debt on the portfolio.