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Home>Terrafina Announces Industrial Property Acquisitions for US$59 Million

Terrafina Announces Industrial Property Acquisitions for US$59 Million

Terrafina Announces Industrial Property Acquisitions for US$59 Million

09/29/2017

Terrafina Announces Industrial Property Acquisitions for US$59 Million

Terrafina (”TERRA”) (BMV:TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by PGIM Real Estate and dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, today announced the acquisition of eight Class A industrial properties located in the Northern region for US$59 million – excluding taxes and transaction costs.

The following are the transaction highlights:

             
Transaction I Transaction II Consolidated
Acquisition Price (millions of dollars) $53 $6 $59
Gross Leasable Area (million square feet) 0.9 0.2 1.1
Price per Square Foot (dollars) $57.5 $47.3 $53.6
Cap Rate (next twelve-months) 8.7% 10.1% 8.8%
Occupancy Rate 100% 100% 100%
Annualized Average Lease Rent (dollars) 5.12 4.93 5.08
Dollar Denominated Lease Contracts 100% 100% 100%
Average Property Age 4.9 years < 1 year 4.0 years
Average Lease Term 7.9 years 9.0 years 8.1 years
 

The acquisition will be financed with the proceeds obtained from the follow-on offering concluded in July 2017, using a total of US$42.9 million in cash and US$16.1 million from existing debt of one of the acquired portfolios, which will be reflected in Terrafina’s balance sheet.

Finally, as a result of these transactions, the Company expects an annualized AFFO increase in the range of 4% to 6%.

“To further advance Terrafina’s acquisition strategy as was announced in July 2017, we are very pleased to have closed this first phase of acquisitions, and to have done so within the timeframe agreed upon with the market. We continue on track with our commitment to close the remaining acquisitions in the upcoming months and therefore anticipate raising the overall value of the portfolio as well as Terrafina’s profitability,” stated Alberto Chretin, Terrafina’s Chief Executive Officer.

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