Fibra Sendero postpones IPO as international accounts cool on Mexican real estate funds
Grupo Acosta Verde’s decision to hold comes after two other fibras list at the bottom of their range
Grupo Acosta Verde’s
Fibra Sendero put off its IPO Wednesday, citing market
conditions, in a move that comes as international investor
demand wanes for Mexican real estate funds.
Six fibras — fondos de inversión en
bienes raíces — have tapped the equity
market this year, raising 52.36 billion pesos ($4 billion). But
the excitement that surrounded the asset class at the time of
Fibra Uno’s $1.7 billion January follow-on is
"Fibras are undergoing an important valuation correction.
They should not see the same volume next year as this year,"
says a senior ECM banker.
The market needs to digest the existing real estate funds
before sizeable new issuance can resume, he says.
Fibra Danhos priced a 5.98 billion peso IPO last month at
the bottom of the range, as did
Fibra Shop in July when raising 5.46 billion pesos. The
pair had traded down 3.7% and 7.3%, respectively, through
Prologis, meanwhile, has yet to launch its deal filed last
Sendero’s shopping mall-focused real estate
fund was expected to raise around 5.94 billion pesos. The fund
has 10 malls in five Mexican states, and aims to acquire land
to develop six more.
The strength of the Mexican ECM pipeline for the rest of
2013 remains unclear. Grupo Alfa has prepared initial documents
for the IPO of the Sigma food products unit, hoping to price by
the end of the year and capture the momentum of
Grupo Lala, which raised 14 billion pesos through its October
Brazilian firms, meanwhile, are also hoping for a chance to
raise capital. Retailer
Via Varejo filed for a follow-on last month, but has held
off launching the transaction. Yet travel service provider
CVC Brasil Operadora e Agencia de Viagens has seen the
opportunity to move forward, launching a 700m real ($299
million) IPO which scheduled for December 5.