FIBRA Prologis snaps up 540,000 sq ft of Class‑A warehouses in three Mexican logistics hubs

Deal announced: an income-producing package in three key corridors

FIBRA Prologis (FIBRAPL14) agreed to buy 540,000 square feet of Class‑A industrial space spread across Monterrey, Toluca and Ciudad Juárez, adding three modern warehouses to its Mexican portfolio. The seller is Prologis (PLD), the global logistics developer and a past partner on transfers and co‑developments. Management framed the purchase as opportunistic: it increases the fund’s scale in high‑demand logistics nodes while keeping development risk low. Because this is an acquisition of existing, mostly leased buildings, the immediate impact for investors will show up in rental cash flow and occupancy statistics rather than long construction timelines.

What exactly was bought and where it sits

The package includes three separate logistics assets that together total roughly 540,000 square feet. The largest piece is a distribution center near Monterrey’s industrial belt at about 220,000 sq ft. The second is a 160,000 sq ft logistics park unit in Toluca, which serves the west corridor feeding Mexico City. The third is a roughly 160,000 sq ft cross‑dock facility close to Ciudad Juárez and its border crossings.

Company materials reported a single aggregate purchase price for the portfolio and did not split the number by building. Prologis (PLD) is listed as the seller; the two firms have exchanged and co‑developed assets before. Closing is expected in the current quarter subject to routine regulatory approvals and customary closing conditions. The properties are described as Class‑A — modern clear heights, ample dock doors and flexible bay sizes — and appear to be mostly leased on medium‑term contracts to a mix of logistics and manufacturing tenants. FIBRA Prologis said it will maintain existing property management arrangements. Management noted the deal was struck at an implied cap rate consistent with recent Mexican industrial transactions, implying a market‑competitive valuation.

FIBRA Prologis did not disclose tenant names or a full lease expiry schedule, but management said the combined weighted‑average lease term sits in the mid‑single digits of years. An independent valuation was used to set the purchase price, and the trust plans to fold the assets into its industrial reporting segment.

How the buy will affect the trust’s books and cash flow

FIBRA Prologis (FIBRAPL14) said it will fund the acquisition from a mix of available liquidity and a modest increase in use of its revolving credit; there was no announcement of a new equity raise. On the balance sheet the transaction will add to investment property at cost and increase debt by the amount drawn. Management expects leverage to tick up only modestly and to stay within its target covenant ranges.

Because these are income‑producing, leased assets, cash flow from operations should improve shortly after closing — assuming occupancy and rent collections hold. Accounting will record the assets at acquisition cost and depreciation and other tax deductions will follow the standard treatment for Mexican real estate trusts. Those non‑cash accounting items will affect reported taxable income but are unlikely to change the underlying cash distribution mechanics unless management alters payout policy.

How the deal fits the company’s playbook

This acquisition aligns with FIBRA Prologis’s stated focus on Class‑A industrial assets in logistics and manufacturing hubs. Monterrey is a manufacturing and heavy‑industry center, Toluca feeds Mexico City’s consumer and auto clusters, and Ciudad Juárez is vital for cross‑border trade with the U.S. Adding scale across these nodes helps the trust deepen tenant relationships and smooth demand across regions.

The buildings’ Class‑A specs match the existing portfolio, which reduces integration work and lowers re‑letting risk if a space becomes vacant. For the Mexican logistics market the underlying demand drivers — nearshoring and e‑commerce growth — remain constructive, though rising land and construction costs and pockets of vacancy near big metros are worth noting. In short, the deal keeps FIBRA Prologis concentrated in lower‑risk, income‑producing industrial real estate rather than speculative development bets.

What investors should watch next

The transaction is mildly positive for holders. Expect near‑term boosts to rental income and occupancy metrics, which can support distributions if payout policy stays steady. Credit metrics may loosen slightly because of added debt, so monitor reported leverage and interest coverage in the next quarterly statement. Key items to watch are the final closing price and cap rate disclosure, any update to FFO or distribution guidance, and the tenant lease expiry profile that will reveal true WAULT exposure. Analyst reaction and share trading will likely depend on whether management plans to refinance, raise equity or simply use cash on hand to manage the balance sheet.

Photo: Mark Stebnicki / Pexels

Sources

• prnewswire.com