Mexico real estate: A matter of trust
Mexican Fibra funds are growing in size and popularity. But quality management and properties will be key to replicating the success of US REITs
By Ben Miller
In late January, Mexico's Fibra Uno real estate fund issued
in the equity capital markets for the third time, raising $1.7
billion - a record for the young asset class. With more than $5
billion in demand, the fund became the first Mexican equity
issuer in history to exercise a so-called hot issue - 20%
overallotment at the issuer's discretion - in addition to the
more commonplace greenshoe, which is 15% at the underwriters'
The return of the oldest Fibra, or Fideicomiso de
Inversión en Bienes Raíces, followed the debuts
of two funds in December. The Mexican investment arm of
Australia's Macquarie raised $1.17 billion in LatAm's
largest-ever real estate IPO, and hotel-focused Concentradora
Fibra Hotelera raised $318 million. Investors, particularly the
international buyers that can take the size of an equity sale
from medium to large, seem finally to be comfortable with the
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