Prudential Provides $160M in Financing for Prologis' Mexican Industrial Portfolio

Prudential has provided co-investment venture managed by Prologis with $160 million in funds for the refinancing of an industrial portfolio in Mexico City and Guadalajara.

December 6, 2011
By Barbra Murray, Contributing Editor

Apartments may be the preferred real state sector in the capital markets, but a good risk is a good risk and Prudential Mortgage Capital Co. recently saw one in a 4.7 million-square-foot industrial portfolio in Mexico. Prudential provided the owners, a co-investment venture managed by Prologis L.P., with $160 million in funds for the refinancing of the collection of buildings in Mexico City and Guadalajara.

Prudential came through with a fixed-rate, five-year loan for the refinancing of the assets. It was the quality of modern buildings in the portfolio, the tenancy, the sponsorship and then some that caught Prudential’s attention. “[It was] all of those factors, plus Mexico City and Guadalajara are considered the best industrial markets in Mexico,” Frederick van Overbeek, a principal with Prudential, told Commercial Property Executive. Van Overbeek led the transaction along with colleague Elizabeth Velazquez, a director with the company.

Encompassing 21 warehouse and distribution facilities, the cluster of properties has an occupancy level of 95 percent and a tenant roster that includes both multinational and regional businesses.

It’s a good time for the industrial real estate sector in Mexico. “It’s recovering well as Mexico is becoming increasingly competitive vis-à-vis China,” van Overbeek said. “Mexico’s manufacturing sector has also demonstrated solid growth, which generates demand for industrial properties.”

In addition to Mexico City and Guadalajara, Monterey, he added, is also seen as one of the most desirable industrial property markets in the country.