"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 acquisition we're announcing today will enable ProLogis to capitalize on opportunities presented by this long-term trend. We're very pleased to have completed the transaction, and look forward to extending our company's position as the premier provider of industrial facilities in Mexico."

The acquired portfolio comprises 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 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.

"This expansion is supported by solid dynamics in both Mexico City and Guadalajara," said Silvano Solis, senior vice president and head of Mexico operations for ProLogis. "In Mexico City, the Class A industrial market totals approximately 31 million square feet and has seen substantial absorption over the past two years. Guadalajara is smaller, with a total industrial supply of about 20 million square feet, but demand for high-quality space there is increasingly strong. As a global company with brand recognition, development expertise and deep customer relationships, ProLogis has a tremendous opportunity to build a leadership position in both of these strategically important distribution markets."

ProLogis industrial platform in Mexico now totals approximately 11.7 million square feet owned, managed and under development, concentrated around the markets of Mexico City, Guadalajara, Tijuana, Juarez, Reynosa and Monterrey.

Source: ProLogis

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Industrial park  Mexico  North America  Prologis  acquisition