Macquarie Mexican REIT has completed its acquisition of 15 industrial properties from affiliates of DCT Industrial Trust Inc for USD82.7 million.
Including transaction costs and property tax, the total acquisition value is USD86.2 million.
The portfolio, totalling approximately 1.65 million square feet (153,555 square meters) of gross leasable area, consists of high-quality properties located in Monterrey, Guadalajara, Tijuana, San Luis Potosí and Querétaro. MMREIT estimates the portfolio will generate approximately USD6.95 million (Ps.90.7 million) of net operating income (NOI).
The transaction was funded with USD41.3 million of senior debt drawn under existing facilities with GE Capital Real Estate México, USD10.7 million drawn under a fund-level VAT facility with Macquarie Bank Limited and USD44.9 million of available cash.
“We're pleased to have reached financial close on the first of the three transactions we entered into during the summer. This particular acquisition is expected to generate approximately Ps.0.115 (approximately USD0.009) per CBFI of incremental funds from operations (FFO)3 in 2014. We expect that the three transactions together will generate incremental funds from operations in a range of between Ps.0.48 and Ps.0.52 (approximately USD0.037 and USD0.040) per CBFI on an annualised basis when closed,” says Jaime Lara, Chief Executive Officer, MMREIT.
Lara noted that the acquisitions announced to date, including the transaction with DCT, are expected to produce incremental FFO of approximately USD24.0 million on an annualised basis when closed.
Following the acquisition, MMREIT's portfolio consists of 259 industrial properties totalling 28.5 million square feet (2.6 million square meters) of gross leasable area across Mexico.