Real Estate News | Latin America Commercial News
Macquarie Launches $1.2 Billion IPO as REITs Line Up in Mexico to Sell Stock
By Alex Finkelstein | December 31, 2012 8:30 AM ET
Macquarie Group Ltd. (MQG), Australia's biggest investment bank. Macquarie has beaten the real estate investment herd by launching a record initial public offering in Mexico totaling 16.1 billion pesos ($1.2 billion USD).
More than $370 million has been sold in Mexico and more than $775 million has been sold internationally, according to Fox Business News.
Known in Mexico as Fibra, the REIT expects to realize net proceeds of more than $1 billion if its over-allotments are exercised.
The trust is selling shares for 25 pesos to 29 pesos each, according to a prospectus filed Nov. 26 with the Mexican stock exchange. The deal would raise a maximum of 14 billion pesos before the so-called greenshoe option for underwriters to buy additional shares. One peso equals eight cents U.S.
With Mexico's economy growing about twice as fast as the United States and Brazil, companies have been raising money in the nation's equity markets, where the benchmark IPC index closed at a record on Oct. 18. Latin America's second-biggest economy will expand 3.8 percent this year, according to the median of 27 forecasts compiled by Bloomberg.
With similar trusts lining up to sell shares in Mexico, Macquarie says it plans to use the funds to acquire industrial properties, including assets from a unit of General Electric Co., known as GE Capital Real Estate Mexico.
Bloomberg reports the trust's initial portfolio was appraised at $1.41 billion to $1.51 billion by Colliers International UK Plc, according to a separate presentation also posted on the bourse's website.
Bank of America Corp., Banco Bilbao Vizcaya Argentaria SA, JPMorgan Chase & Co. and Morgan Stanley helped manage the IPO.
Fibra Uno Administracion SA (FUNO11), Mexico's first real estate investment trust, has soared 72 percent since selling shares in its March 2011 IPO.
In another newly planned IPO, Concentradora Fibra Hotelera Mexicana SA, which would be Mexico's second such publicly-listed real-estate trust, hopes to raise up to 4.36 billion pesos.
Trustee Asesor de Activos Prisma SAPI has also filed to carry out an IPO of its real-estate investment trust known as Fibra Inn, according to a preliminary prospectus.