Prudential Real Estate Investors-sponsored Terrafina (BMV:
TERRA13), has raised MXP8.3 billion (US$665 million) in its initial
public offering, PREI®
announced today. Terrafina is a Mexican real estate investment trust
known as a fideicomiso de bienes raíces, or Fibra. PREI is the
real estate investment management and advisory business of Prudential
Financial, Inc. (NYSE:PRU).
Terrafina offered 295.7 million securities at 28 pesos per share, with
the potential to sell an additional up to 44.4 million securities
pursuant to a greenshoe option. PREI and Terrafina’s internal management
team will manage the Fibra, which holds the third largest industrial
portfolio in Mexico. Citigroup, Goldman Sachs & Co. and HSBC served as
joint bookrunners for the IPO.
“The dual management structure leverages PREI’s real estate acquisition
expertise and asset management capabilities while providing a corporate
governance framework that absolutely aligns our interests with those of
Terrafina’s shareholders,” said Alfonso Munk, head of PREI-Latin America.
Terrafina’s initial portfolio comprises 146 properties acquired through
the combination of two of PREI Latin-America’s closed-end funds, PLA
Industrial Fund I and PLA Industrial Fund II. The properties include 132
developed industrial properties and 14 land reserve parcels. The
properties are primarily located in Mexico’s central, Bajío and northern
regions, spread throughout 25 cities in 16 states.
“Terrafina’s initial portfolio, with its scale, diversity and geographic
reach, gives our investors stability and a substantial market share and
positions them to take advantage of Mexico’s ongoing economic
expansion,” said Alberto Chretin, CEO of Terrafina. “We are delighted
that our investors will continue to benefit from PREI’s expertise, its
industry relationships and ability to execute transactions.”
Terrafina’s investors include Mexican institutional and retail investors
who acquired securities through the public offering, along with
institutional investors around the world who invested through a private
placement, and the original investors in the two closed-end funds.
Terrafina’s potential for strong growth outlook is underpinned by the
prospects for acquisitions of quality additional properties and organic
growth through repositioning properties in the initial portfolio,
continuing improvement in occupancy rates, and by the prudent
development of its land reserves. “Our conservative, yet flexible
capital structure will allow us to pursue appropriate growth
opportunities,” added Francisco Navarro, the Fibra’s chief financial
officer.
A majority independent board with experienced business leaders from a
range of industries governs Terrafina to represent the collective best
interests of the shareholders, maximize the value of the Fibra and
foster long-term success. Chretin, as the CEO, came to Terrafina after
serving as executive advisor to the closed-end industrial funds. He has
more than 30 years of international business experience and more than 15
years of experience in running industrial property businesses in Mexico,
and was most recently minister of the economy for the State of Chihuahua
in Mexico. Munk is the other business-affiliated board member.
Independent board members include: Eduardo Solís, president of the
Mexican Association of the Automotive Industry; Arturo D’Acosta,
managing director of Alvarez & Marsal in Mexico City; Edmundo Vallejo, a
professor of general management at the IPADE Business School; José Luis
Barraza, former chair and current member of the board of directors of
Grupo Aeromexico; and Victor D. Almeida, general director of
Interceramic.
“Our independent board members have deep knowledge and experience in
economics, capital markets, international trade, the automotive industry
and management, which complement the investment management and real
estate knowledge of the Terrafina team and the external advisor,”
Chretin said.
PREI is a leader in the global real estate investment management
business, offering a broad range of investment vehicles that invest in
private and public market opportunities in the United States, Europe,
the Middle East, Asia, Australia and Latin America. Headquartered in
Madison, New Jersey, PREI has other offices in Atlanta, Chicago, New
York, San Francisco, Miami, London, Lisbon Luxembourg, Frankfurt,
Munich, Paris, Istanbul, Abu Dhabi, Mexico City, Sao Paulo, Beijing,
Hong Kong, Seoul, Singapore and Tokyo. In addition, PREI has representatives
in Milan and is establishing a presence in Sydney (pending regulatory
approval). As of September 30, 2012, the company managed approximately
$51.2 billion in gross real estate assets ($34.6 billion net) on behalf
of more than 490 clients worldwide. Its gross assets in Latin America
total $3.6 billion ($2.4 billion net). For more information, visit http://www.prei.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with
approximately $1.060 trillion of assets under management as of December
31, 2012, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees are committed to
helping individual and institutional customers grow and protect their
wealth through a variety of products and services, including life
insurance, annuities, retirement-related services, mutual funds and
investment management. In the U.S., Prudential’s iconic Rock symbol has
stood for strength, stability, expertise and innovation for more than a
century. For more information, please visit http://www.news.prudential.com/.
Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed
primarily to acquire, own, develop and manage real estate properties in
Mexico. Terrafina’s portfolio consists of attractive,
strategically-located warehouses and other light manufacturing
properties throughout the central, Bajío and northern regions of Mexico.
Terrafina owns 146 real estate properties, including 132 developed
industrial facilities with a collective GLA of approximately 19.8
million square feet and 14 land reserve parcels. The company has
approximately 180 lease agreements with tenants that include
international, national, regional and local companies. Additional
information is available at http://www.terrafinafibra.com.
THIS PRESS RELEASE IS NOT AN OFFER FOR SALE OF THE SECURITIES, AND THE
SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT
REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES
ACT OF 1933, AS AMENDED. TERRAFINA DOES NOT INTEND TO REGISTER ANY
PART OF THE OFFERING, OR CONDUCT A PUBLIC OFFERING, IN THE UNITED STATES.
