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
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 asset class...
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