27 February, 2024 | #DatozByDatoz
On February 13th, Fibra Prologis announced its intention to acquire 100% of the Real Estate Investment Trust (Fibra, for its acronym in Spanish) Terrafina through a potential public tender offer (OPA, for its acronym in Spanish) and exchange of up to 100% of the real estate trust certificates (CBFIs, for its acronym in Spanish), at a fixed exchange ratio of 0.580x for each CBFI issued by Terrafina. The potential transaction values Terrafina at $32.765 billion pesos ($1.904 billion dollars).
This acquisition would not only position Fibra Prologis as the largest Fibra in the country, surpassing the proposal of Fibra Next by Fibra Uno, but it would also make it one of the companies with the largest industrial inventory in the country. It would hold a stake of approximately 8%, totaling 88.9 million square feet (ft2) spread across more than 455 properties in the northern, central, and Bajio regions of the country.
However, Fibra Prologis’ biggest bet is on dominating the industrial market in the northern region of the country, as this area has been the most benefited by nearshoring or the relocation of manufacturing processes, with gross absorptions exceeding 30 million ft2 per year, according to Datoz’s Analytics 2.0.
Fibra Prologis has 46.8 million ft2, 51% of which is located in the north, totaling 23.9 million ft2; 36% in the central region, with 17.1 million ft2; and 13% in the Bajío region, with 5.9 million ft2, according to information as of the fourth quarter of 2023. On the other hand, Terrafina has an inventory of 42.1 million ft2, of which 65% is located in northern markets, totaling 27.5 million ft2; 19% is in the Bajío, with 8 million ft2; and 16% in the central region, with 6.6 million ft2, according to data as of the third quarter of 2023.
The merger of both Fibras would result in an inventory of 51.4 million ft2 in the northern region of the country, representing 58% of the total portfolio. With this inventory, Fibra Prologis would have a presence in 10% of the region, observed in markets such as Monterrey, Reynosa, Tijuana, Ciudad Juárez, Chihuahua, Hermosillo, Saltillo, and La Laguna.
Similarly, the trust aims to have a greater participation in leasing manufacturing activities, as it has specialized in the development and management of properties for logistics, while Terrafina has a higher involvement in manufacturing. While 40% of Fibra Prologis’ clients allocate their industrial spaces to manufacturing activities, those of Terrafina have a 70% share. Additionally, Fibra Prologis’ tenant portfolio would include the automotive and industrial goods sectors, two of the main drivers of nearshoring. This is extremely attractive for Fibra Prologis, so the intention to acquire this trust is more than justified.