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  • Writer's pictureRealFacts Editorial Team

Blackstone and Prologis Compete for Mexican Industrial Portfolio


prologis building

A fierce bidding war has erupted for control of Terrafina, a significant player in the Mexican industrial real estate market, with offers being made by global property giant Blackstone, warehouse specialist Prologis, and other interested parties. This report is based on insights from Mark Heschmeyer and CoStar News.


Blackstone, the world’s largest commercial property owner, has partnered with MRP Group, a Mexico City-based commercial real estate owner and operator, to make a compelling bid for Terrafina. Their combined offer values Terrafina at approximately $1.6 billion. This bid represents a 21% premium over Terrafina's certificate price at the close of trading on December 4, and a 5% premium over the closing price on June 7.


Terrafina owns 300 industrial properties totaling 42.3 million square feet across various Mexican markets, including Monterrey. The portfolio is highly coveted, as it provides a significant footprint in the thriving industrial sector of northern Mexico.


The initial bid for Terrafina came from FIBRA Prologis, the Mexican real estate investment trust arm of the U.S.-based Prologis. Launched in 2014, FIBRA Prologis was the first IPO of a real estate investment trust in Latin America. It currently owns 236 logistics and manufacturing facilities in six industrial markets in Mexico, totaling 46.9 million square feet.

FIBRA Prologis' offer involved exchanging Terrafina trust shares for 0.58 trust shares of FIBRA Prologis. Terrafina, advised by PGIM Real Estate, deemed this offer fair from a financial standpoint.

 

Following this, FIBRA MTY, another Mexican real estate trust, entered the fray with a merger proposal for Terrafina. FIBRA MTY owns 106 industrial properties across Mexico and is currently awaiting Terrafina’s response to its offer.


Winning the bid for Terrafina would significantly enhance the market position of the successful party in Mexico’s industrial real estate sector. For Blackstone, acquiring Terrafina would further solidify its dominance in the global industrial property market. For Prologis, securing Terrafina would expand its already substantial footprint in Mexico, bolstering its logistics and manufacturing property portfolio.


As the bidding war intensifies, stakeholders are closely watching to see which offer Terrafina's board will ultimately accept. The decision will likely hinge on the strategic fit, financial benefits, and long-term growth prospects each offer presents.


The competitive bids from Blackstone, Prologis, and FIBRA MTY underscore the high value and strategic importance of Terrafina’s industrial real estate portfolio. The outcome of this bidding war will significantly impact the landscape of industrial real estate in Mexico.

The detailed and dynamic nature of this bidding war highlights the ongoing interest and investment in the industrial real estate sector, particularly in high-growth markets like Mexico.

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