MRO Magazine

Terrafina Signs Binding Agreement to Acquire US$108 Million Portfolio Located in the North and Bajio Region Comprised of 17 Industrial Properties and 2 Land Reserves


July 24, 2015
By Business Wire News

MEXICO CITY

Terrafina (”TERRA”) (BMV: TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by Prudential Real Estate Investors and dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, announced today the signing of a binding agreement to acquire a US$108 million industrial portfolio, excluding transaction and tax costs.

This portfolio comprises 17 industrial properties and two land reserves located in the cities of San Luis Potosi, Irapuato, Monterrey, Ciudad Juarez and Reynosa with a 90.5% occupancy rate and will contribute a total of 1.9 million square feet of gross leasable area (GLA) and 4.3 million square feet from the land reserves. Leasing contracts are U.S. dollar-denominated and structured as triple-net leases (NNN).

The stabilized cap rate for this acquisition for the next twelve months is 8.3%. Moreover, this portfolio is expected to contribute annualized adjusted funds from the operations (AFFO) for US$7.0 to US$7.5 million. The transaction is expected to conclude during the fourth quarter of 2015 and is subject to routine due diligence as well as authorization from the Mexican Anti-Trust Commission (COFECE). Lastly, this transaction will be financed with follow-on resources from the offering that took place on September 2014.

“With this transaction, we are able to increase the portfolio value through the acquisition of high-quality assets located in growing markets, which are linked to manufacturing-for-export and logistics activities. The acquisition also strengthens Terrafina’s profitability and continues to raise the distribution base for our investors,” stated Alberto Chretin, Terrafina’s CEO.

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 PREI.

Terrafina owns 204 real estate properties, including 196 developed industrial facilities with a collective GLA of approximately 28.3 million square feet and 9 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 Prudential Real Estate Investors

Prudential Real Estate Investors is the global real estate investment business of Prudential Financial, Inc. (NYSE: PRU), and operates as Pramerica Real Estate Investors in markets outside of the Americas, Korea and Japan. Redefining the real estate investing landscape since 1970, PREI has professionals in 19 offices in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $61.7 billion ($45.6 billion net) as of March 31, 2015. PREI’s tenured team offers to its global client base a broad range of real estate investment vehicles that span the risk-return spectrum across core, core plus, value-add, debt, securities, and specialized investment strategies. For more information, visit www.prei.com

About Prudential Financial, Inc.

Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1.2 trillion of assets under management as of March 31, 2015, 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.

Mexico City:
Terrafina
Francisco Martinez, +52 (55) 5279-8107
Investor Relations Officer
francisco.martinez@terrafina.mx
Angel Bernal, +52 (55) 5279-8109
Chief Financial Officer
angel.bernal@terrafina.mx
or
New York:
i-advize Corporate Communications, Inc.
Maria Barona, +1-212-406-3691
mbarona@i-advize.com