Advance Real Estate has obtained $314 million in financing from MetLife for the acquisition and recapitalization of a Mexico industrial portfolio.
The seven-year, fixed-rate, interest-only, non-recourse loan has a loan-to-value of 52% and provides prepayment flexibility for property substitutions, future development and asset sales. It has been arranged by James Millon, Tom Traynor from CBRE’s Debt & Structured Finance team.
The newly acquired portfolio includes 57 industrial assets in various locations including Querétaro, Mexico City, Silao, Guadalajara, Monterrey, Tijuana and Toluca. Approximately 90% of the portfolio’s leases are U.S.-dollar-denominated.
The buyer, Advance Real Estate, is headquartered in Querétaro and develops, leases, owns and manages Class A industrial real estate in Mexico’s Central, Bajío and northern regions. The firm is focused on growing its presence in the country, and on developing built-to-suit properties in key markets, as well as completing strategic acquisitions.
“The industrial sector in Mexico is strong, with record low vacancies, dollar denominated rents and significant demand for institutional assets from local and international firms,” Robert Merck, the global head of real estate and agriculture at MetLife Investment Management, said in prepared remarks. “The 57 industrial property portfolio is composed of 100-plus tenants, widely diversified among business sectors and catering to local and international markets.”
The transaction was MetLife’s first with Advance. “Advance is focused on Class A industrial buildings in strong markets,” Merck said. “The sponsor sought a long-term business relationship with a strong lender to continue growing their business.”