Key Takeaways
- • Prologis, Inc. (NYSE: PLD) announced on June 10, 2014 that FIBRA Prologis, a Mexican real estate investment trust, completed its IPO and listed on the Mexican Stock Exchange (BMV: FIBRAPL 14).
- • FIBRA Prologis raised nearly 7 billion pesos ($541.4 million) through the sale of 258 million Real Estate Trust Certificates (CBFIs), including an international placement of more than 158 million CBFIs and a domestic offering of nearly 100 million CBFIs, excluding over-allotment options.
- • Prologis held an ownership interest of approximately 48 percent in the FIBRA as of June 9, 2014.
- • The FIBRA's initial portfolio comprises 177 logistics and manufacturing facilities in Mexico totaling 29.7 million square feet (2.8 million square meters), Class-A assets drawn from Prologis' wholly owned Mexico properties and the former Prologis MX Fund LP and Prologis Mexico Fondo Logistico.
- • The FIBRA holds a right of first refusal on stabilized Prologis-developed properties in Mexico, supporting Prologis' stated goal of simplifying its Mexico business.
Summary
Prolotis, Inc. (NYSE: PLD), described as the global leader in industrial real estate, announced on June 10, 2014 that FIBRA Prologis, a Mexican real estate investment trust, has completed its initial public offering and listing on the Mexican Stock Exchange. The company said the offering was well received, with management citing strong demand for the IPO.
FIBRA Prologis (BMV: FIBRAPL 14) raised nearly 7 billion pesos, or $541.4 million, through the offering of 258 million Real Estate Trust Certificates (Certificados Bursatiles Fiduciarios Inmobiliarios, or CBFIs). The deal included an international placement of more than 158 million CBFIs and a domestic offering of nearly 100 million CBFIs, excluding over-allotment options exercisable within 30 days of the offering. As of June 9, 2014, Prologis held an ownership interest of approximately 48 percent in the FIBRA.
Eugene F. Reilly, CEO, Prologis Americas, said the demand reflected the quality of the initial portfolio, the strength of the local team, and Prologis' track record as sponsor. He described the transaction as consistent with the company's strategy to grow its platform and simplify its business in Mexico.
The FIBRA's assets total 29.7 million square feet (2.8 million square meters) across 177 logistics and manufacturing facilities in Mexico. The Class-A portfolio combines assets from Prologis' wholly owned Mexico properties with those from the former Prologis MX Fund LP and Prologis Mexico Fondo Logistico. The FIBRA holds a right of first refusal on stabilized Prologis-developed properties in Mexico and may acquire properties from third parties.
The release notes that the securities have not been registered under the U.S. Securities Act of 1933 and may not be offered in the United States absent registration or an exemption. Prospective Mexican investors were directed to the definitive prospectus published by the National Banking and Securities Commission (CNBV) and the Mexican Stock Exchange (BMV). As of March 31, 2014, Prologis reported owned or invested properties and development projects totaling approximately 574 million square feet across 21 countries, leased to more than 4,700 customers.
FIBRA Prologis (BMV: FIBRAPL 14) raised nearly 7 billion pesos, or $541.4 million, through the offering of 258 million Real Estate Trust Certificates (Certificados Bursatiles Fiduciarios Inmobiliarios, or CBFIs). The deal included an international placement of more than 158 million CBFIs and a domestic offering of nearly 100 million CBFIs, excluding over-allotment options exercisable within 30 days of the offering. As of June 9, 2014, Prologis held an ownership interest of approximately 48 percent in the FIBRA.
Eugene F. Reilly, CEO, Prologis Americas, said the demand reflected the quality of the initial portfolio, the strength of the local team, and Prologis' track record as sponsor. He described the transaction as consistent with the company's strategy to grow its platform and simplify its business in Mexico.
The FIBRA's assets total 29.7 million square feet (2.8 million square meters) across 177 logistics and manufacturing facilities in Mexico. The Class-A portfolio combines assets from Prologis' wholly owned Mexico properties with those from the former Prologis MX Fund LP and Prologis Mexico Fondo Logistico. The FIBRA holds a right of first refusal on stabilized Prologis-developed properties in Mexico and may acquire properties from third parties.
The release notes that the securities have not been registered under the U.S. Securities Act of 1933 and may not be offered in the United States absent registration or an exemption. Prospective Mexican investors were directed to the definitive prospectus published by the National Banking and Securities Commission (CNBV) and the Mexican Stock Exchange (BMV). As of March 31, 2014, Prologis reported owned or invested properties and development projects totaling approximately 574 million square feet across 21 countries, leased to more than 4,700 customers.
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