MEXICO CITY, Feb. 25, 2020 (GLOBE NEWSWIRE) -- Terrafina (”TERRA”) (BMV: TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by PGIM Real Estate and dedicated to the acquisition, development, leasing, and management of industrial real estate properties in Mexico, announced today the signing of a binding agreement for the construction of a 122,000 square feet expansion in Coahuila.
The expansion project will be developed for a tenant focused in electrical equipment assembly for industrial operations as well as industrial automation. We estimate a total investment of US$6.2 million (excluding taxes), which will generate a development yield over stabilized net operating income (NOI) of approximately 10.4%. We expect construction will last 6 months and we will start collecting rents on the new space two months later. Finally, the new lease was signed for a 10 year-term.
Alberto Chretin, Terrafina’s CEO, commented, “We are very pleased to announce a new expansion project in line with our development strategy, which allows us to strengthen our tenants’ operations and promote more growth in the manufacturing for export activity in Mexico. Improving our clients’ operations like this provides more stability and long-term visibility to Terrafina’s portfolio.”
Contacts:
Francisco Martinez
Investor Relations Officer
Tel: +52 (55) 5279-8107
E-mail: francisco.martinez@terrafina.mx
Ana Maria Ybarra
Miranda IR
Tel: +52 (55) 3660-4037
E-mail: ana.ybarra@miranda-ir.com
About Terrafina
Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease and manage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically located warehouses and other light manufacturing properties throughout the Central, Bajio and Northern regions of Mexico. It is internally managed by highly-qualified industry specialists and externally advised by PGIM Real Estate.
Terrafina owns 300 real estate properties, including 289 developed industrial facilities with a collective GLA of approximately 41.8 million square feet and 11 land reserve parcels, designed to preserve the organic growth capability of the portfolio.
Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stable distributions and capital appreciations. Terrafina aims to achieve this objective through a successful performance of its industrial real estate and complementary properties, strategic acquisitions, access to a high level of institutional support, and to its management and corporate governance structure. For more information, please visit www.terrafina.mx.
About PGIM Real Estate
PGIM, the global investment management business of Prudential Financial, Inc. (NYSE), is one of largest real estate investment managers in the world, with more than $175.9 billion1 in gross real estate assets under management and administration, as of September 30, 2019. Through its PGIM Real Estate and PGIM Real Estate Finance businesses, PGIM leverages a 140-year history of real estate lending on behalf of institutional and middle-market borrowers2, a 49-year legacy of investing in commercial real estate on behalf of institutional investors, and the deep local knowledge and expertise of professionals in 31 cities around the world.
PGIM Real Estate, the real estate investment management business of PGIM, has been redefining the real estate investing landscape since 1970. Combining insights into macroeconomic trends and global real estate markets with excellence of execution and risk management, PGIM Real Estate’s tenured team offers to its global clients a broad range of real estate equity, debt, and securities investment strategies that span the risk-return spectrum and geographies. For more information, visit www.pgimrealestate.com.
1 AUA equals $US36.0 billion.
2 Includes legacy lending through PGIM’s parent company, Prudential Financial, Inc.
About Prudential Financial, Inc.
Prudential Financial, Inc., a financial services leader with more than US$1.6 trillion of assets under management as of December 31, 2019, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.
Forward Looking Statements
This document may include forward-looking statements that may imply risks and uncertainties. Terms such as "estimate", "project", "plan", "believe", "expect", "anticipate", "intend", and other similar expressions could be construed as previsions or estimates. Terrafina warns readers that declarations and estimates mentioned in this document, or realized by Terrafina’s management imply risks and uncertainties that could change in function of various factors that are out of Terrafina’s control. Future expectations reflect Terrafina’s judgment at the date of this document. Terrafina reserves the right or obligation to update the information contained in this document or derived from this document. Past or present performance is not an indicator to anticipate future performance.