4 July, 2023 | #DatozByDatoz
On June 21, 2018, Fibra Upsite made its debut on the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV) by issuing nearly 15 million Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios, CBFIs) with a total value of $554.6 million pesos, at a price of $37 pesos per certificate.
This real estate investment trust (Fibra) was established with the purpose of developing industrial properties under the shared economy scheme, specifically targeting the small and medium-sized enterprise (SME) market. It is worth noting that this is the first Fibra with a focus on development rather than acquisition.
Fibra Upsite prospectus detailed that its initial assets consisted of 5 projects to be developed on a total area of 597,797 square meters (m2), which would result in a potential leasable area of 223,731 square meters (m2) and an approximate investment of $114 million dollars. These properties are located in the markets of Tijuana, Ciudad Juárez, Irapuato, Guanajuato, Cuautitlán Izcalli, Naucalpan, and Mexico City.
Five years later, Fibra Upsite has made progress of 76% in the development of these projects, as it currently has a rentable area in operation of 171,098 square meters (m2) across eight buildings located in Tijuana, Ciudad Juárez, and Tlaxcala. The inclusion of Tlaxcala as a location indicates that Fibra Upsite’s plan has been modified over time.
Rodolfo Balmaceda, President and CEO of Fibra Upsite, stated, “While we had to make some adjustments along the way, by the second half of this year, we will have developed over 200,000 square meters in ten industrial buildings. The current occupancy of the portfolio is 100%, with an average lease contract maturity profile of 7.3 years, which is one of the longest in the Mexican industrial real estate sector. Furthermore, all leases are denominated in dollars, confirming the advantages of a unique business model that generates high value.”
Fibra Upsite has a building under construction in Ciudad Juárez with a leasable area of 34,237 square meters (m2). Additionally, it has the potential to develop an additional 284,767 square meters (m2) within the 624,719 square meters (m2) of land reserve in Querétaro, Irapuato, and Naucalpan.
As of the end of 1Q 2023, the investment properties of Fibra Upsite reached $3,620.6 million pesos, with a market capitalization value of $1,760 million pesos.