Hines, the international real estate firm, announced the sale of a 2.9 million-square-foot portfolio of industrial and logistics properties to Grupo IGS. Financials on the deal were not disclosed. Savills represented Hines on the disposition.
The portfolio consists of 27 properties located in the northern markets of Mexico, including Monterrey, Ciudad Juarez, Matamoros, Reynosa and Torreon. Major tenants in the portfolio include: DalTile, General Electric, Yazaki, Sumitomo and Flextronics, among others.
“The tenant mix and geographic diversity of this portfolio was a unique offering in Mexico,” stated Hines Director Rafael Garcia Rovirosa, who led the transaction for Hines.
This transaction marks another step in growth for the Grupo IGS industrial sector and demonstrates the organization’s ability to achieve scale and add value for investors.
The portfolio was one of the first investments made by a Hines separate account investor. Since Hines assumed management of the portfolio two years ago, Hines and its listing brokers-CBRE, Simons y Asociados, Citius Capital, and Newmark/Prodensa-were successful in taking the portfolio from 73 percent leased to 90 percent leased, while increasing the average lease rate in the portfolio by 20 percent.
“We worked extremely hard on the management and leasing of this portfolio. This strategic sale marks a significant accomplishment for our investment partner, for Hines, and for our leasing and management teams,” said Palmer Letzerich, Hines Senior Managing Director. “We are looking forward to redeploying capital in Mexico and continuing our Investment in the logistics sector.”
About Hines: Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 201 cities in 21 countries. Hines has approximately $100 billion of assets under management, including $54.5 billion for which Hines provides fiduciary investment management services, and $45.5 billion for which Hines provides third-party property-level services. The firm has 113 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,262 properties, totaling over 414 million square feet. The firm’s current property and asset management portfolio includes 529 properties, representing over 213 million square feet. Visit www.hines.com for more information.
About IGS: Founded in 1997, Grupo IGS emerged as Manager and Developer of Industrial Real Estate. Subsequently, leveraging their experience they started the Land for Housing Division and are now expanding to mixed use developments. Over the years, Grupo IGS has formed several partnerships with institutional investors such as Prudential Real Estate Investors, American International Group (AIG), Morgan Rio Capital Management, as well as Mexican Pension Funds (AFORES) that have invested in the three Development Equity Certificates (CKDs in Spanish) issued by the Group up to date. In 2017, Grupo IGS won the AMEXCAP prize for “The best Real Estate Deal of the year”. Since its first Fund, Grupo IGS has always achieved the returns offered to its investors. Visit www.igs.com.mx for more information.
About Savills: Founded in 1855, Savills is an international real estate consulting firm listed on the London Stock Exchange. The company offers advice to investors, owners and users through personalized service, adapting to the needs of each client. The firm’s comprehensive commercial real estate platform includes capital markets, brokerage, tenant representation, project management, consulting and corporate services. With offices in Europe, America, Southeast Asia, Africa and Middle East, Savills employs more than 30,000 professionals through a network of above 700 delegations and partner companies worldwide.
Source : Hines