Private equity funds, Afores and institutional investors have been a determining factor in the development of the Mexican industrial real estate market, being the driving force behind the main investments in industrial parks nationwide.

In the period 2002 and 2006, foreign institutional capital funds were after the search for attractive rates of return under the premise of investing in the real estate industry in Mexican territory, in favor of a time horizon for their exit, which had not yet been defined .

Over the years they managed to develop and stabilize their portfolios and then through the mechanism of Real Estate Investment Trusts or Fibers, they found their way out. At the time, for example, Terrafina raised more than $ 300 million to invest in industrial portfolios.

The country looked attractive for multiple companies with solid business plans in a time horizon of at least 10 years, thus creating the tip of a secure demand whose interests were aligned for their role as tenants where their capital and income should be concentrated on strengthening their operation and do not leave them tied up on the property of a property.

Check here: What to expect from industrial demand in 2022?

Real estate and especially those associated with the industrial real estate market have guaranteed income in fixed currencies in dollars, which has been very attractive in the midst of the volatility of the exchange rate and rising inflation.

This scenario facilitated the development of a varied offer that has matured both in the profile of the bidders and in the varied and multiple warehouses distributed between the BTS formats and the speculative spaces, the latter showing an increasingly competitive and healthy market. .

We can cite as examples of investment, at the beginning of the pandemic the entry of the Canadian asset manager ICM Asset Management (ICM Inmobilien) and a fellow countryman that administered pension funds together with the developer Alveo Kapital, the constitution of a joint venture to build Kampus Industrial Santa Rosa, in Guadalajara.

The investment in the first phase is estimated at 47 million dollars, which allowed financing the purchase of the land together with the construction of three Class A buildings, which was available for rent from the first quarter of 2021.

Another example is the funds raised in mid-February 2021 by FINSA, which managed to raise US $ 395 million for the development of industrial infrastructure in the 10-year Finsa III Fund instrument.

Also at the beginning of December 2021 Fibra MTY received a loan for 150 million dollars contracted with a syndicate of banks led by BBVA Mexico, at a variable rate, without guarantee and with a single payment of capital at maturity, as well as a term of five years, same as will be used to carry out acquisitions mainly of real estate in the industrial sector.

If we analyze the 29 pre-funded CKD's, 22 were issued between 2009 and 2012 and 7 between 2014 and 2016. Of these, about half expired in 2020 and 2021, just in the pandemic period, 16 of these CKD's expired, including Finsa, IGS , Vertex and Planigrupo expired in 2021.

Of interest: Fibras exceed 312 thousand million pesos in market capitalization

The open and modern economy of Mexico combined with the unique geographical location that allows it to access multiple markets, mainly the United States and Canada, allow the country to position itself as a winning option to continue attracting foreign capital during the coming 2022.

According to AMPIP on its portal, FDI flows in the last 5 to 6 years have remained between 30 and 35 billion dollars, while in 2020 the total FDI was 29 billion dollars.

More than 47% of Mexico's FDI has been channeled to advanced manufacturing industries, such as automotive, spare parts, electronics, aerospace, pharmaceuticals, electronic commerce, and medical devices, among others.

Regarding internal strengths, the solid macroeconomic foundations of its financial market and the legal elements of the multiple agreements signed guarantee the ways for them to consolidate these investments, being of relevance the clear signals that investors demand from the national government.