Macquarie Mexican REIT Buys 171 KSF Retail Center in Mexico City
- Mar 31, 2014
Macquarie Mexican REIT has acquired City Shops del Valle, a 171,297-square-foot retail center, located in the Mexico City Metropolitan Area of Colonia del Valle.
The deal was previously agreed to back in July 2013 as part of an acquisition of a portfolio of six properties, with MMREIT agreeing to acquire City Shops del Valle once construction was completed. MMREIT paid approximately $216.9 million for the six properties, excluding transaction costs and taxes, with a potential earn-out of up to approximately $6.5 million payable to the sellers based on additional lease up.
City Shops del Valle is an urban infill property strategically located in one of Mexico City’s most affluent neighborhoods where there is limited room for additional commercial development.
“We are pleased to add this new center to our portfolio of high-quality retail properties,” Jaime Lara, MMREIT’s CEO, said in a company statement. “The property includes strong anchor tenants serving the growing needs of the surrounding communities. We look forward to working closely with them to ensure that their property management needs are met and that their customers, in turn, have a rewarding shopping experience.”
Tenants of the City Shops del Valle retail center include Superama, Bed Bath & Beyond, Cinemex, and Sports World. The center is nearly fully leased with an occupancy rate of 99.6 percent as of this month.
According to the statement, MMREIT estimates that the six-property portfolio will generate approximately $19 million of net operating income and approximately $12.1 million of funds from operations on an annualized basis.
MMREIT’s portfolio now consists of 259 industrial properties and 8 retail/office properties, totaling 28.5 million square feet and 2.7 million square feet of gross leasable area across Mexico, respectively.