ProLogis (Denver), a provider of distribution facilities and services, has acquired more than 3.5 million sq. ft. of industrial space and land in Mexico for $238 million in cash and assumed debt. The acquisition increases the company’s footprint in the country by more than 40%.
“When we launched service in Mexico in 1997, we deliberately focused on northern border markets that serve as distribution and light manufacturing points for products being exported to the United States,” said Jeff Schwartz, CEO of ProLogis. “Over the past several years, however, the Mexican economy has undergone a number of important structural improvements, including currency stabilization and banking reform. These changes are driving economic growth, expansion of the country’s middle class and increased domestic consumption of consumer goods.”
The acquired portfolio comprises 18 buildings in six industrial parks, varying in size from 124,000 to 1.3 million sq. ft. Five of the parks are in Mexico City and the sixth is in southeastern Guadalajara .The properties have a blended occupancy rate of 89%. Current occupants include APL, Becton Dickenson, Canon, Evenflo, Exel, Hasbro, Office Depot, TYCO and Whirlpool.