AMB Ramps Up Industrial Property Presence in Mexico with Accion Takeover
- Jul 25, 2008
AMB Property Corp., through an affiliate, has acquired the remaining 42 percent of G. Accion S.A. de C.V. that it had not previously owned. The purpose of the transaction was, according to AMB, to create a fully integrated platform from which the company will continue to develop, lease, acquire and operate industrial real estate in Mexico. Currently, San Francisco-based AMB’s Mexican portfolio totals about 9.2 million square feet of operating and under-development facilities, and land capable of supporting roughly 6.8 million square feet of further development. Target markets for AMB include Mexico City, Guadalajara, Monterrey, Queretaro, Reynosa and Tijuana. Demand for Mexican warehouse and distribution space is expected to grow with the resurgence of the Mexican economy that is now under way. According to a recent report by ProLogis–a Denver-based international industrial property owner quite active in Mexico–new industries have emerged in Mexico in recent years, such as aeronautics, custom-order electronics and pharmaceuticals, to spur industrial space demand. Moreover, Mexico is now the 10th largest manufacturer of automobiles in the world, and is expected to rank fifth by 2011. “Today, Mexico’s economy is back on track,” the report noted. “Its manufacturers, domestic and foreign-owned alike, have succeeded in moving up the value-added ladder, thereby neutralizing China’s threat to its export markets.” AMB’s new subsidiary, re-named AMB Property Mexico, will operate as the fourth region in the company’s Americas division under Eugene Reilly, president, the Americas. Luis Gutierrez, former CEO of G. Accion, will serve as managing director of AMB’s Mexico region. In addition to Gutierrez, the following people have also joined AMB as officers: Hector Ibarzabal, senior vice president, director of industrial; Gerardo Ramirez, vice president, development; Jorge Girault, vice president, real estate investments; Jesus Barrera, vice president, real estate investments; Rafael Berumen, vice president, asset management; and Bernardo Martinez, vice president, tax director. All together, AMB owns or has investments in properties and development projects totaling about 155.5 million square feet in 47 markets within 15 countries. The company invests mainly in properties located in infill submarkets of its targeted markets.