ProLogis, a global provider of distribution facilities and services, said Tuesday it acquired more than 3.5 million square feet of industrial space and land in Mexico in a deal valued at $238 million in cash and assumed debt.
The acquisition bolsters ProLogis' industrial platform in Mexico by more than 40 percent and makes the company one of the country's largest providers of light manufacturing and distribution facilities.
The acquired portfolio includes 18 buildings in six industrial parks, varying in size from 124,000 square feet to 1.3 million square feet. Five of the parks are in Mexico City and total 3.1 million square feet in aggregate; the sixth is in southeastern Guadalajara and totals 423,000 square feet. All of the buildings were constructed within the last six years. The land obtained through the transaction totals approximately 140 acres in both markets and can support 2.9 million square feet in additional development, the company said.
"When we launched service in Mexico in 1997, we deliberately focused on northern border markets that serve as distribution and light manufacturing points for products being exported to the United States," said Jeff Schwartz, chief executive officer of ProLogis. "Over the past several years, however, the Mexican economy has undergone a number of important structural improvements, including currency stabilization and banking reform. These changes are driving economic growth, expansion of the country's middle class and increased domestic consumption of consumer goods.
The properties have a blended occupancy rate of about 89 percent, and more than a quarter of the total space is leased to members of ProLogis' "Focus 500," a target group of manufacturers, retailers, transportation companies, logistics service providers and other companies with large-scale distribution needs in multiple markets. Existing customers at the acquired parks include APL, Becton Dickenson, Canon, Evenflo, Exel, Hasbro, Office Depot, TYCO and Whirlpool.
ProLogis said its industrial platform in Mexico now totals about 11.7 million square feet owned, managed and under development, concentrated around the markets of Mexico City, Guadalajara, Tijuana, Juarez, Reynosa and Monterrey.